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 gross domestic product (GDP).
C) a lower growth rate of real gross domestic product (GDP).
D) a lower level of net investment.
E) a lower level of depreciation.

Question

Quizplus · Accepted Answer

There is a strong positive relationship between investment and economic growth, therefore, it is likely that country X, with a higher growth rate of real investment, will also have a higher growth rate of real GDP. This is because investment leads to increased production, output, and consumption, which boosts economic growth.

Country X Has a Higher Growth Rate of Real Investment