Chapter 15 Central Banks In the World Today91.We have a country, Fantasyland, where the current per capitareal income is 20,000 units of output, and the current average growth rate is 2.0 percent. What will be the difference in the standard of living twenty years from now if Fantasylandgrows at a rate of 3.5 percent and we assume population is constant? Answer: We can use a financial calculator or exponents to determine the answer. For example, if we enter 20,000 as the current present value, and use a growth rate of 2 percent as an interest rate and the time period of 20 years, our future value will be 29,719 units. At a growth rate of 3.5 percent, the future value will be 39,796 or almost double. This shows the large impact that relatively small differences in the growth rate can have over long periods of time.