Does the rule of 70 predict greater increases in the amount of income for poorer countries when both rich and poor countries have the same growth rate? No, according to the rule of 70, if the growth rate of income is the same in the two countries, then the number of years it will take each country's income to double is the same. No, the rule of 70 states that the amount of time it will take a country's income to double is dependent on its population growth rate, not on its initial level of income. Yes, the rule of 70 states that when two countries grow at the same rate, the poorer country will have larger increases in income each year. No, according to the rule of 70, if the growth rate of income is the same in the two countries, then the increase in income will be the same.

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Business

Nathan Rangel

11 September, 03:02

Does the rule of 70 predict greater increases in the amount of income for poorer countries when both rich and poor countries have the same growth rate? No, according to the rule of 70, if the growth rate of income is the same in the two countries, then the number of years it will take each country's income to double is the same. No, the rule of 70 states that the amount of time it will take a country's income to double is dependent on its population growth rate, not on its initial level of income. Yes, the rule of 70 states that when two countries grow at the same rate, the poorer country will have larger increases in income each year. No, according to the rule of 70, if the growth rate of income is the same in the two countries, then the increase in income will be the same.

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Lilianna Underwood · Answer 1

No, the rule of 70 states that the amount of time it will take a country's income to double is dependent on its population growth rate, not on its initial level of income.

Explanation:

Generally, the rule of 70 refers to a technique that is used to calculate the number of years a particular variable would take to double. It is calculated by dividing 70 by the growth of the variable.

In economics, the rule of 70 is often used to calculate the number of years it would take the income or gross domestic product (GDP) growth of a country to double. Therefore, it can be stated as:

Number of years it will take income to double = 70 : Growth rate of income or GDP

From the above, it can be seen that the rule of 70 does to consider the initial level of income or GDP.

Therefore, the correct answer is that the rule of 70 states that the amount of time it will take a country's income to double is dependent on its population growth rate, not on its initial level of income.