The dire predictions about the underfunded nature of Social Security, Medicare, and state and local pensions could be wrong because
A. interest rates may turn out to be higher in the future.
B. unemployment rates may turn out to be higher than they are currently predicted to be.
C. taxable incomes may turn out to be lower than they are currently predicted to be.
D. benefits could be curtailed from what they are currently predicted to be.
Answer: D
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Third-degree price discrimination involves
A) charging each consumer the same two part tariff. B) charging lower prices the greater the quantity purchased. C) the use of increasing block rate pricing. D) charging different prices to different groups based upon differences in elasticity of demand.
If the nominal interest rate is 18 percent and the real interest rate is 6 percent, the inflation rate is:
A. 18 percent. B. 24 percent. C. 12 percent. D. 6 percent.