The power of compounding explains why countries with policies aimed at increasing the annual rate of economic growth can, over time, become much richer than countries that do not.

Question

Quizplus · Accepted Answer

Compounding means that small increases in economic growth rate can have a significant impact on a country's GDP over time due to the cumulative effect of growth. Therefore, countries with policies aimed at increasing economic growth rate can become much richer over time.

The Power of Compounding Explains Why Countries with Policies Aimed