The Life-Cycle Model Predicts That If the Proportion of the Population

question 119

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

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Definitions:

Private Enterprise

Business operations that are owned, financed, and managed by private individuals rather than the government.

Hydrocarbons

Organic compounds consisting entirely of hydrogen and carbon, used as fuels, solvents, and as raw materials for various chemicals.

Incentive-based Regulation

A regulatory approach that aims to encourage desired behaviors through financial incentives, rather than through mandates or prohibitions.

Command-and-control Regulation

A regulatory approach where the government sets specific limits or standards for various aspects of business operations to control or reduce negative externalities.