Which of the following statements about the Social Security, Medicare, and Medicaid programs is true?

A) Spending on these three programs will rise from 10.4% of GDP currently to 19.7% of GDP by 2040.
B) Costs are being driven up by the fact that Americans are living longer and medical costs are rising substantially.
C) Some economists have argued for decreasing taxes to help with these programs’ funding problems.
D) Some economists have argued for increasing benefits to help with these programs’ funding problems.

ANSWER:

B) Costs are being driven up by the fact that Americans are living longer and medical costs are rising substantially.