If the saving rate in an economy is 30 percent and the GDP of the economy is $1,000,then the level of investment in the economy will be ________.

Question

Quizplus · Accepted Answer

The formula for calculating investment is: 
Investment = Saving
In this case, the saving rate is 30% of GDP, which is $1,000. Therefore,

Saving = 0.3 x $1,000 = $300

So, the level of investment in the economy will be $300. Hence, option B is correct.

If the Saving Rate in an Economy Is 30 Percent