Rapid population growth leads to age dependency which refers to:
a. a reduction in the amount of capital per worker, which lowers the productivity of labor.
b. shifts in government expenditures from the country's infrastructure to education and health care.
c. a large number of dependent children whose consumption requirements lower the ability of the economy to save.
d. high mortality rates of middle-aged workers that reduces the average amount of investment spending.
e. survival of the elderly who are dependent on government welfare support.
c
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Inflation must be high in Moscow because it is very expensive to live there
Indicate whether the statement is true or false
If the inflation rate is 2.5 percent and the nominal interest rate is 10 percent, then the real interest rate is
A) 2.5 percent. B) 7.5 percent. C) -2.5 percent. D) -7.5 percent. E) 12.5 percent.