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 higher than they are currently predicted to be.
D. taxable incomes may turn out to be lower than they are currently predicted to be.


Answer: C

Economics

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A) increases both the long-run nominal interest rate and the long-run expected interest rate. B) decreases the long-run nominal interest rate and increases the long-run expected interest rate. C) decreases both the long-run nominal interest rate and the long-run expected interest rate. D) increases the long-run nominal interest rate and decreases the long-run expected interest rate.

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Currently, bank runs are a major problem for the U.S. banking system and the Fed

a. True b. False Indicate whether the statement is true or false

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As capital deepening occurs, there will be increased real wages and economic growth.

Answer the following statement true (T) or false (F)

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If money is used as a mechanism to hold purchasing power for a period of time it is functioning as a:

A. standard of value. B. store of value. C. medium of exchange. D. unit of account.

Economics