At the Beginning of the Year, One Developing Country (DVC)

Multiple Choice

At the beginning of the year, one developing country (DVC) has a real income per capita of $800. In a developed country (IAC) , the real income per capita is $30,000. Both countries experience a 4
Percent growth rate for the year. At the end of the year, the absolute income gap between these
Two countries will have increased from $29,200 to

A) $30,368.
B) $31,200.
C) $30,120.
D) $32,032.