If two variables have the same rate of growth over the long run,their ratio will ________.
A) increase over the long run
B) decrease over the long run
C) remain constant over the long run
D) initially decrease and then increase over the long run

Question

Quizplus · Accepted Answer

If two variables have the same rate of growth over the long run, their ratio will remain constant over the long run. This is because the proportion between the two variables will not change, even though both are growing at the same rate. For example, if both sales and expenses are growing at a rate of 5% per year, their ratio (profit margin) will remain the same.

If Two Variables Have the Same Rate of Growth Over