Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
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