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Country a Has Been Growing at a Rate of 7

Question 78

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Country A has been growing at a rate of 7 percent per year,whereas country B has been growing at a rate of 2 percent per year.The Solow growth model would predict that


A) country A is wealthier than country B.
B) both countries are in a steady state.
C) country B is closer to its steady state than country A.
D) country A is closer to its steady state than country B.
E) these two countries will never converge at the same level of wealth.

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