1.00%
32.24%
11.40%
1..19%
Answer is Right!
Answer is Wrong!
The correct answer is: C. 11.4%
The capital production ratio is the amount of capital required to produce one unit of output. The savings income ratio is the proportion of income that is saved. To increase the national income by 6.2%, the savings income ratio must be 11.4%.
Here is a brief explanation of each option:
- Option A: 1.00%. This is the lowest possible savings income ratio, and it would not be enough to increase the national income by 6.2%.
- Option B: 32.24%. This is the highest possible savings income ratio, and it would be more than enough to increase the national income by 6.2%.
- Option C: 11.4%. This is the correct answer. It is the savings income ratio that is required to increase the national income by 6.2%.
- Option D: 1.19%. This is a higher savings income ratio than is required to increase the national income by 6.2%.