Asked by samuel morales on Jun 02, 2024
Verified
If per capita real income grows by 2 percent per year, then it will double in approximately 20 years.
Per Capita Real Income
The average income earned per person in a given area, adjusted for inflation, reflecting the true purchasing power of the populace.
Percent Per Year
A rate that expresses the change of a quantity over one year as a percentage of the initial quantity.
- Acknowledge the association between per capita real GDP, living conditions, and the expansion of the economy.
- Become familiar with the consequences of different savings and investment percentages on a nation's economic condition.
Verified Answer
HR
Haily RandallJun 05, 2024
Final Answer :
False
Explanation :
According to the Rule of 70, if per capita real income grows at 2 percent per year, it will double in approximately 35 years (70 divided by 2 equals 35).
Learning Objectives
- Acknowledge the association between per capita real GDP, living conditions, and the expansion of the economy.
- Become familiar with the consequences of different savings and investment percentages on a nation's economic condition.
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