As the baby boomer generation retires and takes money out of their retirement accounts,what is expected to happen to the interest rate,ceteris paribus?

Question

Quizplus · Accepted Answer

When the baby boomer generation retires and withdraws money from their retirement accounts, they are essentially reducing the amount of money available for lending in the financial markets. This decrease in the supply of loanable funds, all else being equal (ceteris paribus), leads to an increase in interest rates as borrowers are willing to pay more for the now scarcer funds.

As the Baby Boomer Generation Retires and Takes Money Out