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According to current projections,Social Security and other entitlement programs will soon be severely underfunded. If the government decides to cut social security benefits to future retirees and raise Social Security taxes on all workers,what will probably happen to the supply of funds available to the capital markets? What will be the effect on interest rates?
Bounded Rationality
A concept in decision making that recognizes the limitations of human cognition and information processing, suggesting that individuals are "rationally bounded" to making decisions based on the limited information they have and their finite cognitive capacity.
Cognitive Capacity
The total amount of mental resources available to an individual for carrying out cognitive tasks.
Quandary
A state of perplexity or uncertainty over what to do in a difficult situation.
Car Dealerships
Businesses that specialize in selling new or used cars, typically authorized by automakers to sell their brand of vehicles and offer related services such as maintenance and financing.
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