The text Web site provides data on 82 countries from a 2002 study on government bank ownership. For each country, the data include (a) the percentage of bank assets at government-owned banks in 1970, (b) the average growth rate of bank loans as a percentage of GDP from 1960 to 1995, and (c) the average growth rate of real GDP per person from 1960 to 1995.
a. Make a graph with variable (a) on the horizontal axis and (b) on the vertical axis and plot each country. What might explain the relationship between these variables?
b. Make a graph with (a) on the horizontal axis and (c) on the vertical axis. What might explain the relationship between these variables?