Consider three imaginary countries.In Aire,saving amounts to $4,000 and consumption amounts to $12,000;in Bovina,saving amounts to $3,000 and consumption amounts to $24,000;and in Cartar,saving amounts to $10,000 and consumption amounts to $50,000.The saving rate is
A)higher in Aire than in Cartar,and it is higher in Cartar than in Bovina.
B)higher in Cartar than in Aire,and it is higher in Aire than in Bovina.
C)higher in Cartar than in Bovina,and it is the same in Bovina and Aire.
D)higher in Aire than in Bovina,and it is the same in Aire and Cartar.

Question

Quizplus · Accepted Answer

The saving rate is calculated as saving divided by consumption. In Aire, the saving rate is 4,000/12,000 = 0.33. In Bovina, the saving rate is 3,000/24,000 = 0.125. In Cartar, the saving rate is 10,000/50,000 = 0.2. Therefore, the saving rate is higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.

Consider Three Imaginary Countries