Country A has real GDP per person of 10,000 while country B has real GDP per person of 20,000. All else constant, country A will eventually have a higher standard of living than country B if
A)the level of saving per person is 500 in country A and 750 in country B.
B)the level of saving per person is 1,000 in country A and 1,800 in country B.
C)Both of the above are correct.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

Country A will eventually have a higher standard of living than country B if the level of saving per person is higher in country A than in country B. This is because saving leads to investment, which leads to economic growth.

Country a Has Real GDP Per Person of 10,000 While