A declining dependency ratio
A)requires immediate and permanent increased spending on education and old-age medical expenses.
B)requires increased spending on education but decreased costs associated with old-age medical expenses.
C)requires permanently decreased spending on education but temporarily increased costs associated with old-age medical expenses.
D)permits temporarily decreased spending on education and old-age medical expenses.

Question

Quizplus · Accepted Answer

A declining dependency ratio means that there are fewer dependents (children and elderly) relative to the working-age population. This allows for temporarily decreased spending on education and old-age medical expenses, as the workforce is able to support a larger share of the population. However, this does not necessarily mean permanently decreased spending on education or decreased costs associated with old-age medical expenses. There may still be a need for education spending to ensure a skilled workforce, and old-age medical expenses may increase as the elderly population grows.

A Declining Dependency Ratio