The pay-as-you-go nature of the Social Security system means that _____
a. current beneficiaries are paid out of general tax revenues
b. current beneficiaries are paid out of the payroll taxes levied on current workers
c. current beneficiaries are paid based on contributions made during their last five working years
d. current beneficiaries are paid out of current earnings on the Social Security trust fund
b
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The largest component of GDP is
A) gross private domestic investment. B) personal consumption expenditures. C) net exports of goods and services. D) government expenditure on goods and services.
The rich receive _____ all property income.
A. nearly B. about one-half of C. about one-quarter of D. a very small percentage of
A country is experiencing civil unrest. What is likely to happen to the value of its currency?
A. It will stabilize. B. It will increase. C. It will decrease. D. It will not be affected.
Limiting net external wealth effects could be accomplished by limiting movements in the exchange rate. What measure might address this situation?
A) devaluing the currency B) keeping nominal interest rates exactly 1% higher than one's trading partners C) borrowing only in U.S. dollars D) pegging the exchange rate to the currency of the largest creditor nation