The estimated date of fund exhaustion of the Medicare Trust Fund is so dependent on
assumptions made with regard to economic growth, interest rates, and political changes
because
Instructions: In order to receive full credit, you must make a selection for each option. For
correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the
option twice to empty the box.
? the higher the projected growth rate in wages, the more projected tax revenues for the
fund.
? the higher the projected real interest rate, the better return on the trust fund.
? the higher the projected real interest rate, the lower return on the trust fund.
? the greater numbers of children will produce more tax revenues for the fund.
? the greater numbers of children will produce greater Medicare expenses.
? the higher the projected fertility rate, the greater the projected tax revenues for the fund.
? the higher the projected fertility rate, the greater Medicare expenses.
?
the longer projected life expectancy would be anticipated to create greater Medicare
expenses.
? the longer projected life expectancy would be anticipated to create more tax revenues for
the fund.
