Asked by Alexa Warson on May 04, 2024
Verified
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.
Verified Answer
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.
Learning Objectives
- Recognize the effects of fiscal and monetary policies on savings, consumption, and investment behaviors.