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Other Things Equal, How Do Relatively Poor Countries Tend to Grow

Question 86

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Other things equal, how do relatively poor countries tend to grow?


A) They grow slower than relatively rich countries; this is called the poverty trap effect.
B) They grow slower than relatively rich countries; this is called the savings effect.
C) They grow faster than relatively rich countries; this is called the catch-up effect.
D) They grow faster than relatively rich countries; this is called the diluting capital effect.

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