The rule of 70 tells us roughly:
A)what the total amount of expenditure is in the economy.
B)how much unemployment exists in the economy.
C)how long it will take something to double if you divide 70 by its annual growth rate.
D)how income is distributed in the country.

Question

Quizplus · Accepted Answer

The rule of 70 is used to estimate how long it will take for a variable to double, given its annual growth rate. This is done by dividing 70 by the growth rate (as a percentage). Therefore, option C is the correct choice. The other options (A, B, and D) are unrelated to the rule of 70.

The Rule of 70 Tells Us Roughly