Answer
a) Increasing the budget deficit allows the older generations to consume more at the expense of the younger generations. This redistribution is from young to old.
b) Increasing subsidies for education loans allows the younger generations to increase their human capital. This redistribution is from old to young.
Work Step by Step
c) The younger generations will have an increased level of public capital, so this is a redistribution from old to young.
d) This distribution is from young to old, as the younger workers have to fund the payments to the older generation.
