Question

In the last line of the second paragraph 'What happens if ..... fill the gap ?', what gap is the author referring to?

• A. The gap in the GDP created by a slower economic growth.
• B. The gap in the GDP created by lower consumer spending.
• C. The gap in the GDP created by the lowering of investment.
• D. A combination of both A and C

Answer 1

The correct option is C

The gap in the GDP created by the lowering of investment.

The author says that the GDP of China consists of two parts: Investments and Consumer spending. The investment part has been the major part of the GDP but may now decline as the returns on investments start falling. So the decrease in investments will create a gap in the GDP.