Why are entitlement programs- like Social Security and Medicare- impediments to long-term fiscal policy
development and economic growth?
A)
B)
Social Security and Medicare are funded solely by monetary policy
alterations, such as additions to the total amount of money in. circulation.
Social Security and Medicare alter short-term interest rates when providing
benefits and the manipulation of interest rates is the most significant fiscal
policy tool.
Social Security and Medicare are programs administered by the Federal
Reserve, so much of the time and efforts of the Fed are spent in dealing
with entitlement concerns.
D)
Social Security and Medicare are mandatory spending programs that make
up a substantial portion of the federal budget, leaving little room for
significant budget addition or subtractions or tax changes.
I
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Why are entitlement programs- like Social Security and Medicare- impediments to long-term fiscal pol...
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