Consumer choice theory predictsthat,withidentical,rational consumers and perfect creditmarket,fully-funded social security will not improve the social welfare. Whynot?

A.

Consumers are saving the optimal amount already

B.

Lenders can benefit while borrowers are worse off with the system

C.

Borrower can benefit while lenders are worse off with the system

D.

Fully-fundedsocial security always makes everyone worse off.

E.

None of the above