Why is this false: If the national economy shrank at an annual rate of ​9% per year for three consecutive​ years, then the economy shrank by 27​% over the 3​-year period.

It is false that, if the national economy shrank at an annual rate of 9% per year for three consecutive years then the economy shrank by 27% over the 3-year period, because this percentage does not follow a linear path, but on the contrary, it is calculated exponentially: 9% of each year is calculated on the rest that remained after discounting 9% the previous year.

Thus, if the national economy has a value of 100, after three years it will not have a value of 79, but a value of 75.35, as it arises from the following calculation:

100 x 0.91 ^ 3 = X

100 x 0.753571 = X

75.35 = X

i believe the answer is letter c) 8

step-by-step explanation:

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