There is no simple relationship between the proportion of investment to output and the growth rate of per-capita output since
A)population growth rates differ among countries
B)income growth rates differ among countries
C)the efficiency of investment among countries can vary widely
D)the savings rates among countries can vary widely
E)none of the above

Question

Quizplus · Accepted Answer

The efficiency of investment can vary widely among countries, affecting the growth rate of per-capita output independently of the proportion of investment to output.

There Is No Simple Relationship Between the Proportion of Investment