Which of the Following Explains Why Some People Have Suggested

question 21

Multiple Choice

Which of the following explains why some people have suggested raising the eligibility age for Social Security?

• A) Social Security has had a surplus for the past decade.
• B) Social Security benefits have been cut in recent years.
• C) Social Security may not be sustainable without cutting benefits.
• D) Social Security may not be sustainable given the current number of children in the program.
• E) Social Security may not be sustainable given the number of poor people in the program.

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Definitions:

Working Capital

The difference between a company's current assets and its current liabilities, indicative of its short-term financial health.

Discount Rate

The discount rate is the interest rate used to calculate the present value of future cash flows in discounted cash flow analysis, reflecting the risk and opportunity cost of capital.

Pretax Return

The income an investor or business earns before any taxes are deducted.

Net Present Value

A financial measurement that calculates the value of a project or investment by discounting the expected future cash flows to their present value using a specific discount rate.