Economists Novy-Marx and Rauh Contend That If New York Wanted

question 10

Multiple Choice

Economists Novy-Marx and Rauh contend that if New York wanted to adequately fund its pension systems for its public workers it would have to put on

• A)a one-time tax of nearly $39,000 per household.
• B)a one-time tax of nearly $390,000 per household.
• C)an annual tax of nearly $39,000 per household.
• D)an annual tax of only $39 per household.

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Definitions:

Term Deposit

A bank deposit with a fixed term and interest rate, where the money must remain deposited for a specified duration, incurring penalties for early withdrawal.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

Insurance Proceeds

The money received by an insured party from an insurance company to cover a claim.

Accounts Payable

Liabilities owed by a business to its creditors for goods and services purchased on credit, which are due within a short period.