Consider the (rather implausible) scenario in which the U.S. government phases out all Social Security transfers to
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Consider the (rather implausible) scenario in which the U.S. government phases out all Social Security transfers to retirees. Assuming the goods market is in equilibrium, graph the new saving curve and comment on the effects on the level of saving, investment, and the real interest rate.
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Answer In the given scenario if the US government phases out all Social Security transfers to retirees it would have significant effects on saving inv...View the full answer
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