Question

The State of Minnesota Veteran's Administration is pushing for a bill to make contributions by military personnel to their retirement funds be automatic. If the bill passes, contributions will occur automatically unless the military member checks a box asking for the money in salary instead. The governor is against the bill, saying it will have no effect. What type of model is the governor most likely using?

Answer 1

The governor is most likely using the economic model to argue against the bill, assuming that military personnel will not take advantage of the option to receive the money in salary instead of contributing to their retirement funds.

Step-by-step explanation:

The governor is most likely using the economic model to argue against the bill. The governor believes that the automatic contributions to retirement funds will have no effect on military personnel, as they will most likely not opt out and choose to receive the money in salary instead. The governor is assuming that military personnel will not take advantage of the option to receive the money in salary, and therefore, the bill will have no impact on their financial situation.