Country X has a higher growth rate of real investment than country Y.You might expect country X to have:
A) a higher growth rate of real gross domestic product (GDP).
B) the same growth rate of real GDP.
C) a lower growth rate of real GDP.
D) a lower level of net investment.
E) a lower level of depreciation.

Question

Quizplus · Accepted Answer

Real investment is a key driver of economic growth, and an increase in real investment is likely to lead to an increase in real GDP. Therefore, it is reasonable to expect country X to have a higher growth rate of real GDP than country Y.

Country X Has a Higher Growth Rate of Real Investment