According to the Rule of 70

question 3

Multiple Choice

According to the rule of 70,

• A)​if a country is growing at 14% per year, its output will double in approximately 5 years.
• B)​if a country is growing at 10% per year, its output will double in approximately 7 years.
• C)​if a country is growing at 2% per year, its output will double in approximately 35 years.
• D)​all of the above are true.

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Definitions:

Demand

The desire for certain goods or services backed by the ability and willingness to pay for them.

Luxury Goods

High-end items that are not necessary for survival but are desired for their quality, status, or aesthetics.

Doubled Income

A situation where an individual's or entity's income increases to twice its initial amount.

Homothetic Preferences

Consumer preferences where if a bundle of goods is preferred to another, then any scaled up or down version of the bundle is also preferred based on the proportion of goods, maintaining consumption patterns.