Which of the following policies would dramatically and permanently reduce government outlays? Choose one or more: A. reducing the cost-of-living increase for Social Security recipients B. reducing welfare payments for every month an unemployed person doesn't find a job C. lowering wages for workers involved in all government construction projects D. reducing the number of overseas military bases E. lowering Medicare and Social Security taxes

Respuesta :

Answer: A. reducing the number of people eligible for Medicare and Medicaid by half

E. raising the age to receive Social Security to 75

Explanation: That’s correct! By raising the age to receive Social Security to 75 and reducing the number of people eligible for Medicare and Medicaid by half, the government would dramatically and permanently reduce its outlays because these are mandatory payments.

The policy that can be followed so that the government outlays can be reduced permanently is A:  reducing the cost-of-living increase for Social Security recipients.

  • An outlay can be regarded as a payment, it can be explained as payments by the federal government which is been tracked back to congressionally setting up an appropriations accounts.

  • It is a payment for liquidation of an obligation , and different from repayment of debt principal. Option A explained how this outlay by government can be reduced.

Therefore, option A is correct.

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