Multiple Choice
The life-cycle model predicts that if the proportion of the population that is elderly increases over the next 20 years, then the national saving rate ______ over the next 20 years.
A) will increase
B) will remain unchanged
C) will decrease
D) may first increase and then decrease
Correct Answer:

Verified
Correct Answer:
Verified
Q111: A borrowing constraint that is not binding
Q112: Economist David Laibson suggests that people end
Q113: John Maynard Keynes believed that the average
Q114: In the Fisher two-period model, the consumer
Q115: Why did Keynes's conjectures hold up well
Q116: Milton Friedman argued that, over long periods
Q117: According to Modigliani's life-cycle hypothesis, the consumption
Q118: In Irving Fisher's two-period model, if the
Q120: If the Keynesian consumption function is
Q121: The life-cycle model assumes that consumers use