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19 July, 06:30

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

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  1. 19 July, 06:45
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    The savings rate is higher in Aire than in Carttar and it is higher in cartar than in Bolivia.

    Explanation:

    To calculate savings rate:

    [ (Total income - consumption) / total income] x 100

    Where total income = consumption + savings.

    The savings rates are as follows

    Aires: [ (16000 - 12,000) / 16000] x 100

    = 400/16

    = 25%

    Bovina: [ (27000 - 24000) / 27000] x 100

    = 300/27

    = 11.11%

    Cartar: [ (60000 - 50000) / 60000] x 100

    = 100/6

    = 16.67%
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