Which of the following best explains why the Social Security system will face financial difficulties in the future?
a. Too much Social Security revenue was invested in the private sector rather than in government bonds.
b. In the next two decades, the number of workers paying into the system will decline sharply relative to the number of retirees collecting benefits.
c. The federal government does not pay interest on the money it borrows from the Social Security system.
d. The funds in the Social Security trust fund were invested in high-risk ventures that failed to pay off.
B
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When the Fed increases the money supply,
A) the interest rate rises and this stimulates consumption spending. B) the interest rate falls and this stimulates investment spending. C) the interest rate rises and this stimulates investment spending. D) people spend less because they have more money.
Most income tax revenues are collected by _____
a. the federal government b. state governments c. county governments d. city governments