Problem
1. Why does a limited commitment constraint lower the equilibrium real interest rate?
2. Under what conditions will a pay-as-you-go social security system improve welfare for those currently alive and for all future generations?
3. What are the effects of a fully funded social security system?
4. How does the government's ability to commit matter for social security programs?
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.