Suppose That a Country Has a Depreciation Rate of 3

question 132

Multiple Choice

Suppose that a country has a depreciation rate of 3 percent, a national savings rate of 6 percent, and growth in net exports of -4 percent. Assume that the savings are efficiently transformed into investment, what is the investment rate for this country?

• A) 2 percent
• B) 10 percent
• C) -1 percent
• D) 5 percent

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Definitions:

Large Group

A sizable collection of individuals or entities that share a common characteristic or are engaged in a common activity.

Smaller Group

A subset of a larger population or collection, typically characterized by fewer members or lesser size.

Parity Ratio

A metric often used in agriculture and economics to compare the relative value of one commodity or currency to another, based on a standard or base period.

Farmers

Individuals or entities engaged in the activity of agriculture, aiming at producing food and other crops.