In a frictionless world
A) Fully funded social security must necessarily make everyone better off, as it provides for retirement.
B) Fully-funded social security is a constraint on private saving behavior, and therefore cannot make anyone better off.
C) Fully funded social security is always preferred to pay-as-you-go social security.
D) Fully funded social security is more efficient, because it is a private program instead of a government program.
B
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Purchasers of corporate bonds lend money to a corporation
a. True b. False Indicate whether the statement is true or false
A budget surplus
a. occurs when the government has debt equal to zero. b. causes government debt to increase. c. exists when government spending is greater than tax revenues. d. reduces the government's debt.