Under one reform proposal for the social security system

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Under one reform proposal for the U.S. Social Security system, part of the Trust Fund would be invested in stocks. The idea is that stocks have paid a higher average rate of return than government bonds in the past. Explain why this policy would probably affect the average rate of return on stocks. What can be said about the likely direction of the effect–up or down?

Reference no: EM13898510

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