The Social Security system is currently generating tax revenues that exceed the benefits paid to recipients. This surplus is
a. being invested in foreign bonds, which will provide Americans with a source of income when the baby boom generation retires.
b. separated from other government revenue so politicians will not spend the money during the current period.
c. being channeled into earmarked private savings accounts.
d. invested in government bonds, the redemption of which will require an increase in taxes (or additional Treasury borrowing).
D
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Assume the marginal product for a particular good is constant. Describe the shape of the total product function that would accompany it
What will be an ideal response?
Refer to Figure 18-1. The appreciation of the euro is represented as a movement from
A) A to B. B) D to A. C) A to C. D) B to C. E) D to C.
How does the deadweight loss occur in a deficiency payment program?
The U.S. Secretary of the Treasury met with the Japanese Finance Minister to discuss possible cuts in the Japanese discount rate. The likely outcome of currency speculation in response to this news is that
a. the dollar will depreciate. b. the dollar will appreciate. c. the yen will appreciate. d. both the dollar and yen will appreciate.