For a country to double its per capita income every twenty years, it would have to sustain an annual economic growth rate equal to
A) 1.75 percent.
B) 2 percent.
C) 3.5 percent.
D) 4 percent.

Question

Quizplus · Accepted Answer

Using the Rule of 70, we can estimate the number of years it would take for an economy to double its per capita income by dividing the annual growth rate into 70. Therefore, if a country wants to double its income every 20 years, the annual growth rate must be 70/20 = 3.5 percent.

For a Country to Double Its Per Capita Income Every