Which of the Following Will Result When the Pay-As-You-Go Social

question 21

Multiple Choice

Which of the following will result when the pay-as-you-go Social Security program is introduced in a country?

• A)The supply curve of saving will shift rightward
• B)The market interest rate will decline
• C)Gross investment in the economy will decline
• D)The investment demand curve will become inelastic

---

Definitions:

Foreign-Currency Exchange

The system through which one currency is converted into another, enabling international transactions without the impediment of differing national currencies.

U.S. Resident

An individual who lives in the United States, regardless of citizenship status, for a significant portion of the calendar year.

Government Budget Deficit

The financial situation in which a government's expenditures exceed its revenues, leading to borrowing or reducing reserves.

Domestic Investment

The total capital expenditures for the acquisition, maintenance, or improvement of physical assets within a country's borders.