Question

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is saving amounts to $3,000 and consumption amounts to $24,000, and ___________
a. higher in Cartar than in Bovina, and it is the same in Bovina and Aire.
b. higher in Aire than in Bovina, and it is the same in Aire and Cartar.
c higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.
d. higher in Cantar than in Aire, and it is higher in Aire than in Bovina.

Answer 1

Answer:

c higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.

Explanation:

As we know that,

Money supply = Saving amount + consumption amount

And, the saving rate would be

= (Saving amount ÷ money supply) × 100

So

For Aire, the saving rate would be

= ($4,000 ÷ $16,000) × 100

= 25%

For Bovina, the saving rate would be

= ($3,000 ÷ $27,000) × 100

= 11.11%

For Cartar, the saving rate would be

= ($10,000 ÷ $60,000) × 100

= 16.66%