Using the Rule of 72, How Long Will It Take

question 58

Multiple Choice

Using the Rule of 72, how long will it take something growing at 1% per year to double

• A)100 years
• B)72 years
• C)50 years
• D)720 years

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Definitions:

Public Saving

The portion of a government's budget surplus, which is the difference between tax revenues and government spending.

Private Saving

Private saving is the portion of households' and businesses' income that is not spent on consumption or taxes, typically saved for future investment or consumption.

Closed Economy

An economy that does not interact with other economies in the world

Government Deficit

Occurs when a government spends more money than it receives in revenue over a specific period, leading to borrowing or currency issuance.