Which of the Following Is Implied by the Compounding of Economic

Multiple Choice

Which of the following is implied by the compounding of economic growth rates?

A) A large increase in investment today has little effect on national income over the long run.
B) Small changes in sustained growth rates can have a significant impact on national income over several decades.
C) Consumers should not save,given the low real returns that compounding produces.
D) A 10% annual rate of return will double an investment in less than 6 years.
E) A 2% annual growth rate of GDP will double national income in 27 years.