What has happened to the ratio of the population age 50 to 75 years divided by the population under age 50 in the high-income industrial countries in recent decades?
A) This ratio has declined and some economists believe this change has pushed interest rates upward.
B) This ratio has increased and some economists believe this change has pushed interest rates downward.
C) This ratio has increased and some economists believe this change has increased aggregate demand and led to higher rates of inflation.
D) This ratio has been virtually unchanged in high-income countries during recent decades.

Question

Quizplus · Accepted Answer

The ratio of the population age 50 to 75 years divided by the population under age 50 in high-income industrial countries has increased in recent decades. This has been attributed to factors such as increased life expectancy and decreased fertility rates among younger age groups. Some economists believe that this change has pushed interest rates downward, as older individuals are more likely to save and less likely to borrow, leading to a lower demand for credit.

What Has Happened to the Ratio of the Population Age