If x grows at 3 percent and y grows at -2 percent and w = x/y,then w grows at 1 percent.

Name: If x grows at 3 percent and y grows at -2 percent and w = x/y,then w grows at 1 percent.
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

The growth rate of w = x/y is not simply the difference in growth rates of x and y. It involves the formula for the growth rate of a quotient, which is approximately the growth rate of x minus the growth rate of y, adjusted for their relative sizes.

If X Grows at 3 Percent and Y Grows at -2