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.

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

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.

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