5. Compare a hypothetical DVC with a hypothetical IAC. In the DVC, average per capita income is $500 per year. In the IAC, average per capita income is $40,000 per year. If both countries have a savings rate of 10 percent per year, the amount of savings per capita in the DVC will be per person per year, while in the IAC it will be per person per year.

LO42.3

a. $50; $4,000.

b. $5; $400.

c. $450; $36,000.

d. None of the above.