Suppose Social Security Contributions Rise by $10 Billion While Social

question 135

Multiple Choice

Suppose Social Security contributions rise by $10 billion while Social Security benefits also rise by $10 billion. Further, personal income taxes fall by $700 million. As a result

• A) both personal and disposable personal income should increase.
• B) national income, personal income, and disposable income should increase.
• C) disposable income should increase while personal income and national income are unchanged.
• D) personal income, disposable personal income, and national income remain unchanged.

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Definitions:

Chronic Diseases

Long-term medical conditions that are generally progressive and can be controlled but not cured, such as diabetes, asthma, and heart disease.

Diabetes

A chronic condition characterized by high levels of sugar in the blood, due to the body's inability to produce or effectively use insulin.

Eccentric Contraction

A type of muscle contraction that occurs when the muscle elongates while under tension, often associated with controlled lowering movements.

Lengthens

The process of extending in length or duration; to make or become longer.