Suppose the Romer Model Parameters in East Timor Are

Multiple Choice

Suppose the Romer model parameters in East Timor are
,
,
,and
;while in North Timor they are
,
,
,and
;then:

A) neither country grows.
B) East Timor's per capita income growth rate is 20 percent and North Timor's is 1 percent.
C) East Timor's per capita income growth rate is 5 percent and North Timor's is 0.05 percent.
D) East Timor's per capita income growth rate is 100 percent and North Timor's is 1 percent.
E) each country's per capita income growth rate is 20 percent.