Question

Which statement is true about exponential growth and​ decay?

Select the correct answer below.

A.
For both exponential growth and​ decay, the absolute growth rate is constant. The relative growth rate increases for exponential growth and decreases for exponential decay.
B.
For both exponential growth and​ decay, the absolute growth rate is constant. The relative growth rate decreases for exponential growth and increases for exponential decay.
C.
For exponential​ growth, the relative growth rate and the absolute growth rate both increase. For exponential​ decay, the relative growth rate and the absolute growth rate both decrease.
D.
For both exponential growth and​ decay, both the relative growth rate and the absolute growth rate are constant.
E.
For both exponential growth and​ decay, the relative growth rate is constant. The absolute growth rate increases for exponential growth and decreases for exponential decay.
F.
For both exponential growth and​ decay, the relative growth rate is constant. The absolute growth rate decreases for exponential growth and increases for exponential decay.

Answer 1

E. For both exponential growth and​ decay, the relative growth rate is constant. The absolute growth rate increases for exponential growth and decreases for exponential decay.

Explanation:

The defining characteristic of exponential growth or decay is that the rate of change is proportional to the quantity. The proportionality constant (relative growth rate) is just that—constant. The absolute growth rate increases as the quantity increases and decreases as the quantity decreases.