Question

Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that:_______.A. All three countries will grow at the same rate.
B. Country A will grow the fastest.
C. Country B will grow the fastest.
D. Country C will grow the fastest

Answer 1

Answer:

correct option is B. Country A will grow the fastest.

Explanation:

given data

Real GDP Country A = $10,000

Real GDP Country B = $20,000

Real GDP Country C = $30,000

solution

here we can say Country A will grow the fastest

because Country A has more potential to grow due to low base

and that is results in more growth till it matures

so correct option is B. Country A will grow the fastest.