The rule of 70 which predicts the time required for the economy of a nation to double, is based on the mechanism of:
A)compound interest.
B)capital formation.
C)labor force productivity.
D)capital investments.

Question

The rule of 70 which predicts the time required for the economy of a nation to double, is based on the mechanism of:
A)​compound interest.
B)​capital formation.
C)​labor force productivity.
D)​capital investments.

Quizplus · Accepted Answer

The rule of 70 is based on the idea of compound interest where the economy grows at a certain rate and the time it takes for the size of the economy to double can be calculated by dividing 70 by the growth rate.

The Rule of 70 Which Predicts the Time Required for the Economy