Problem:
In 1965, about 34% of all adult workers were under the age of 34, compared with almost 47% by 1980. Meanwhile, the share of the workforce between 35 years and 59 years shrank from about 60% to 49%. What impact might this dramatic shift in the age distribution of the U.S. workforce have had on the U.S. current-account balance over this 15 year period? (Hint: Consider the difference in savings behavior between younger and older workers.)