When the Social Security surplus is used to cover the current operating expenses of the federal government, it will
a. make it easier for future taxpayers to provide promised Social Security benefits to baby boomers.
b. reduce the outstanding debt of the federal government.
c. make it possible for Congress and the president to spend more without raising current taxes or borrowing from the general public.
d. increase the credibility of the Social Security benefits promised to future retirees.
C
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Based on Table 9.1, the balance on the current account is
A) +100. B) +200. C) 0. D) -100. E) -200.
Price ceilings are adopted in most cases because
A) the government views the current equilibrium price as too high for consumers. B) the government wants to create surpluses. C) the government favors a non-intervention policy. D) producers need incentives to produce more of the good or service.
Fundamental analysis shows that stock in Widgets-R-Us has a present value that is lower than its price
a. This stock is overvalued; you should consider adding it to your portfolio. b. This stock is overvalued; you shouldn't consider adding it to your portfolio. c. This stock is undervalued; you should consider adding it to your portfolio. d. This stock is undervalued; you shouldn't consider adding it to your portfolio.
Which of the following statements is false?
A) A call option will sell for a fraction of the cost of the stock. B) A futures contract can be written for a commodity (such as wheat), or for a currency. C) A futures contract gives the owner the right, but not the obligation, to buy or sell a commodity at a specified price on a given future date. D) The specified price at which an option gives the owner the right to buy a stock at is called the stick price.