1.4. Consider three countries: Jovenia (average age: 25), Mittelaltistan (average age: 45), and Decrepetia (average age: 75). Based on the lifecycle theory, which of these countries will probably have:

a. High savings rates?

b. High rates ofborrowing?

c. High rates of dissaving? (That's spending your past savings.)

Note: The way for entire countries to save is to build up the stock of productive capital either at home (through high investment rates) or abroad (by exporting more than importing, i.e., running a trade surplus, and using the proceeds to buy foreign investment goods and assets).