Question
The decrease in dependency ratio (ratio of dependent population to working-age population) of a country may lead to which of the following situation:
Select the correct answer using the code given below:
- Increase in the savings rate
- Decrease in the savings rate
- Increase in Capital Formation
- Decrease in Capital Formation
Select the correct answer using the code given below:
Answer: Option C
Answer: (c)
Whenever in any country, the working population increases and dependent population decreases, the savings in the economy increases. (This also happens at the family level.
If a family has more working members and fewer dependents then the savings of the family increases). The increased savings leads to an increase in investments.
So, (i) & (iii) statements are true.
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Answer: (c)
Whenever in any country, the working population increases and dependent population decreases, the savings in the economy increases. (This also happens at the family level.
If a family has more working members and fewer dependents then the savings of the family increases). The increased savings leads to an increase in investments.
So, (i) & (iii) statements are true.
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