‘‘The operation of a pay-as-you-go pension system is like a hotel with an infinite number of rooms: the hotel can never be full, since a vacancy can be obtained by making all occupants move along one room. Both are theoretical constructs, and neither has practical value.’’ Discuss.
‘‘The operation of a pay-as-you-go pension system is like a hotel with an infinite number of rooms: the hotel can never be full, since a vacancy can be obtained by making all occupants move along one room. Both are theoretical constructs, and neither has practical value.’’ Discuss.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
Problem 7CQ
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‘‘The operation of a pay-as-you-go pension system is like a hotel with an infinite number of rooms: the hotel can never be full, since a vacancy can be obtained by making all occupants move along one room. Both are theoretical constructs, and neither has practical value.’’ Discuss.
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