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Answer to Question #213631 in Macroeconomics for INGRID
Question #213631
Demographers predict that the fraction of the population that is elderly will increase over the next 20 years. What does the life-cycle model predict for the influence of this demographic change on the national saving rate?
Expert's answer
The savings will increase. Increased life longevity means that people will need to save more over their working life to fund a longer retirement period.
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