Asked by Alexa Warson on May 04, 2024

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Which of the following would transfer wealth from old to young?

A) Increases in the budget deficit
B) Decreased building of highways and bridges
C) More generous education subsidies
D) Indexation of Social Security benefits to inflation

Indexation

The automatic correction by law or contract of a dollar amount for the effects of inflation

  • Recognize the effects of fiscal and monetary policies on savings, consumption, and investment behaviors.
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ZK
Zybrea KnightMay 05, 2024
Final Answer :
C
Explanation :
More generous education subsidies would transfer wealth from old to young by providing financial support for the education of younger individuals, which is typically funded by the broader tax-paying population that includes older individuals.