Suppose that young people often borrow and then repay the loans when they are older.These actions relate to which problem in measuring inequality?

Question

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The borrowing and repaying of loans over an individual's economic life cycle relates to the problem of economic mobility, which is the ability of individuals to move up or down the income ladder over time. It is an important factor to consider when measuring inequality and understanding trends in income distribution.

Suppose That Young People Often Borrow and Then Repay the Loans