Question
The World Bank reports gross capital formation as a % of GDP. Take that to be an investment rate. In 2021, the U.S. investment rate
The World Bank reports "gross capital formation as a % of GDP." Take that to be an investment rate. In 2021, the U.S. investment rate was 21% of GDP; China's investment rate was 43%. What is the benefit of having a higher investment rate?
How do you --- if you're thinking like an economist --- reason that China achieves an investment rate that is twice the US investment rate?
- In 2022, gross saving was $4,657.5 billion and gross domestic investment was $5,489.6 billion. How did businesses invest more than Americans saved?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Having a higher investment rate can bring several benefits to an economy 1 Economic Growth A higher investment rate can contribute to increased economic growth Investment in physical capital such as i...
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Step: 2
Step: 3
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
