The compounding of economic growth rates means that
A) consumers should not save, given the low real returns that compounding produces.
B) a large increase in investment today has little effect on national income over the long run.
C) a 10 percent annual rate of return will double an investment in less than 6 years.
D) a 2 percent annual growth rate of GDP will double national income in 27 years.
E) small changes in sustained growth rates can have a significant impact on national income over several decades.
Correct Answer:
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