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The discussion surrounding Equation (11.1) noted that problems can arise in maintaining the same replacement ratio in a population in which the dependency ratio is
The discussion surrounding Equation (11.1) noted that problems can arise in maintaining the same replacement ratio in a population in which the dependency ratio is growing. Suppose that instead of keeping the replacement ratio constant over time, the goal of public policy is to maintain a constant level of benefits.
Explain how this changes one's views of the consequences of an increasing dependency ratio, especially if wages are increasing over time due to productivity gains.
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