What is the effect on your average saving rate


Problem

Assume that a goverment social security program taxes you 2000 in each of your working years and provides you with an 8000 pension in year 5. if you still desire to smooth consumption, calculate your resived saving plan. how has the social security program affected your consumption? what is the effect on your average saving rate in the first 4 years? can you see why some economists claim that social security can lower saving?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What is the effect on your average saving rate
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