Which statement best explains how investment and growth rates relate across countries?
A) They are negatively related.
B) They are positively related.
C) They are negatively related for rich countries, but positively related for poor countries.
D) They are positively related for rich countries, but negatively related for poor countries.

Question

Quizplus · Accepted Answer

Investment and growth rates are positively related across countries. This is because investment is a key driver of economic growth, as it allows for the expansion of production capacity and the creation of new jobs, leading to higher output and incomes. Countries that invest more tend to see higher rates of economic growth, while those that invest less tend to experience slower growth.

Which Statement Best Explains How Investment and Growth Rates Relate