What two things do the rate of growth of the economy depend on?
A) The amount saved out of national income and the amount invested.
B) The amount of GDP produced per dollar of investment and the rate of depreciation.
C) The amount saved out of national income and the amount of GDP produced per investment dollar.
D) The amount saved out of national income and the rate of interest.

Question

Quizplus · Accepted Answer

The rate of growth of the economy depends on the amount saved out of national income, which increases the pool of funds available for investment, and the amount of GDP produced per investment dollar, which indicates the efficiency and productivity of investment. Therefore, choice C is the correct answer as it combines the two factors.

What Two Things Do the Rate of Growth of the Economy