Question

State whether the following statement is true or​ false, and explain why. If the statement is​ false, state the true change.

If the national economy shrank at an annual rate of 9​% per year for four consecutive​ years, then the economy shrank by 36​% over the four​-year period.

Choose the correct answer below​ and, if​ necessary, fill in the answer box to complete your choice.

1. The statement is false because each year there is a different reference value. The economy actually shrank by    %over the four​-year period.

​(Type an integer or decimal rounded to the nearest tenth as​ needed.)

2. The statement is true because 4 times 9​% is 36​%.

Answer 1