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Unformatted text preview: year 2030. Assume that the current tax rate on workers (t) is 10 percent and that current benefits per retiree (B) equal $15,000. Further, assume that the budget for Social Security is currently balanced. Assuming that the replacement rate (B/W) is held fixed, what will the tax rate on workers (t) need to be in 2030 in order for the budget to remain balanced? Suppose instead that the tax rate (t) and wage of workers (W) is held fixed. What will benefits per retiree (B) need to be in 2030 in order for the budget to remain balanced? Problem 2: Rosen, Chapter 21, problem 8 Problem 3: Rosen, Chapter 22, problem 5...
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This note was uploaded on 07/22/2010 for the course ECON 1480 taught by Professor Knight during the Spring '10 term at Brown.
- Spring '10