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NikAS [45]
3 years ago
9

According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo, small differences in __________ make f

or large differences in _________ over several decades, assuming the same growth of population for each country.
A. inflation rates; unemployment rates
B. unemployment rates; economic growth rates
C. economic growth rates; real GDP per capita
D. tax rates; real GDP per capita
Business
1 answer:
Oxana [17]3 years ago
3 0

Answer:

C

Explanation:

According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo, small differences in economic growth rates make for large differences in real GDP per capita over several decades, assuming the same growth of population for each country.

For small countries ( less population and same growth of population over the years) even small growth rates makes a large change in  real GDP per capita over the years.

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Answer:

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Explanation:

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Increased interest rated would mean that people would save more to take advantage of an increased saving rate. This would cause people to save money and thus reduce the supply of money. The law of demand and supply suggests that lesser supply would up the price that is it would appreciate. This is also true as people in Bostonia may also want to save in New Yorkland thus reducing the supply further as they demand more Yank.

Reducing the money supply any other way would mean as both countries are trade partners there will be demand for Yank but as supply is constricted, it would again appreciate.

Hope that helps.

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