Which of the Following Would Transfer Wealth from Old to Young

question 147

Multiple Choice

Which of the following would transfer wealth from old to young?

• A)Increases in the budget deficit
• B)Decreased building of highways and bridges
• C)More generous education subsidies
• D)Indexation of Social Security benefits to inflation

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Definitions:

Expected Utility

A theory in economics that assesses how choices provide a certain level of satisfaction or utility to individuals, under conditions of uncertainty.

Expected Rate of Return

The profit or loss one anticipates on an investment that has various known or expected rates of return.

Variance

The measurement of the spread between numbers in a data set, indicating how much the numbers diverge from the average.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of values, often used in finance to assess the volatility of an investment.