Movement of the fast-growing Asian nations through the demographic transition may have had an impact on growth rates because it
A)reduced expenditures on health care.
B)reduced expenditures on pensions.
C)increased savings.
D)increased consumption relative to GDP.

Question

Quizplus · Accepted Answer

As the Asian nations moved through the demographic transition, their populations became more youthful, with a higher proportion of working-age adults relative to dependents. This demographic shift may have led to an increase in saving rates, as workers set aside money for future needs such as education or retirement. Increased savings can fuel economic growth by providing a pool of funds for investment in new businesses, infrastructure, and other productive activities.

Movement of the Fast-Growing Asian Nations Through the Demographic Transition