ECONOMICS 110/111 Suppose a household can expect to earn $2 M during its working life.

(d)  Supposethat,giventhelowinterestrate,thegovernmentbecomesconcernedthathouseholdsarenot saving enough for retirement and institutes a mandatory public pension plan that has the household paying a “contribution” of $0.4 M today, but with a promise of receiving a “benefit” of $0.4 M in the future. Is the household made better off? What happens to the amount of private saving? [6] Hallo this work is detailed and requires a lot of time to work on it please post in advanced section or send to me as an advanced question and we will be able to assist you