Question

Consider three imaginary countries. In Aziria, in Tanistan, saving amounts to $4,500 and consumption amounts to $10.500. The saving rate is saving amounts to $3,000 and consumption amounts to $7,000 in Graniva, saving amounts to $2,000 and consumption amounts to $8,000:________. a. higher in Tanistan than in Graniva, and it is the same in Graniva and Aziria.b. higher in Graniva than in Tanistan, and it is higher in Tanistan than in Aziria. c higher in Aziria than in Tanistan, and it is higher in Tanistan than in Graniva. d. higher in Aziria than in Graniva, and it is the same in Aziria and Tanistan.

Answer 1

To determine the saving rates of Aziria, Tanistan, and Graniva, we use the values of saving and consumption to find the proportion of income saved. Aziria's saving rate is higher than Tanistan's, and Tanistan's saving rate is higher than Graniva's, making option (c) the correct answer.

Step-by-step explanation:

To determine which country has the higher saving rate, we need to consider the amounts of saving and consumption. The saving rate can be calculated as the proportion of income that is saved rather than consumed. For Aziria, saving is $4,500 and consumption is $10,500. Tanistan has savings of $3,000 and consumption of $7,000. Finally, Graniva saves $2,000 while consuming $8,000.

The saving rate for each country would be calculated by dividing savings by the sum of savings and consumption, which represents total income. Therefore, the saving rate for Aziria is $4,500 divided by ($4,500 + $10,500), Tanistan is $3,000 divided by ($3,000 + $7,000), and Graniva is $2,000 divided by ($2,000 + $8,000).

After calculating these, we can determine that the correct answer is option (c): higher in Aziria than in Tanistan, and it is higher in Tanistan than in Graniva.

Answer 2

D. The Savings rate is higher in Aziria than in Graniva, and it is the same in Aziria and Tanistan.

Step-by-step explanation:

Consider three imaginary countries.

In Aziria, saving amounts to $4,500 and consumption amounts to $10.500.

in Tanistan, the saving rate is saving amounts to $3,000 and consumption amounts to $7,000

in Graniva, saving amounts to $2,000 and consumption amounts to $8,000:

The savings rate in Aziria is = 4500/10500 = 43% of Consumption

The savings rate in Tanistan is = 3000/7000 = 43% of Consumption

The savings rate in Graniva is = 2000/8000 = 25% of Consumption

Hence, The Savings rate is higher in Aziria than in Graniva, and it is the same in Aziria and Tanistan.