Assume India's income level is now roughly 5% of that of the United States.Assuming there is no change in the savings rates and the levels of technology of these two countries, how many years will it take for India to reach 10% of the U.S.'s income level?

Question

Quizplus · Accepted Answer

If India's income level is 5% of the U.S. and it needs to reach 10%, it must double. Assuming no change in savings rates and technology, the time it takes to double income is determined by the rule of 70, which states that the doubling time is approximately 70 divided by the growth rate. If India's growth rate is around 2% higher than the U.S., it would take about 35 years to double its income level.

Assume India's Income Level Is Now Roughly 5% of That