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(Table) When You Look at "Table: GDP Data for Two

Question 182

Multiple Choice

(Table) When you look at "Table: GDP Data for Two Countries," what evidence do you see that suggests which country has the highest savings rate?  Country  GDP  Population  C  I  G  X-M  Econia $90 billion 30 million  $55 billion $3 billion $30 billion $2 billion  Macland $200 billion 50 million $100 billion $30 billion $50 billion $20 billion \begin{array} { | c | c | c | c | c | c | c | } \hline \text { Country } & \text { GDP } & \text { Population } & \text { C } & \text { I } & \text { G } & \text { X-M } \\\hline \text { Econia } & \$ 90 \text { billion } & 30 \text { million } & \text { \$55 billion } & \$ 3 \text { billion } & \$ 30 \text { billion } & \$ 2 \text { billion } \\\hline \text { Macland } & \$ 200 \text { billion } & 50 \text { million } & \$ 100 \text { billion } & \$ 30 \text { billion } & \$ 50 \text { billion } & \$ 20 \text { billion } \\\hline\end{array}


A) The smaller amount of consumer spending in Econia suggests that it has a higher savings rate.
B) Consumer spending is a smaller share of total spending in Macland, suggesting that consumers are saving a larger share of their income.
C) Investment is lower in Econia, suggesting the households are saving rather than investing.
D) The higher GDP in Macland means that they must have a higher savings rate.

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