Refer to the Following Figure When Answering

Multiple Choice

Refer to the following figure when answering
Figure 5.6: Solow Diagram
-Consider Figure 5.6. If K_SK is the current capital stock in South Korea and K_CH is the current capital stock in China, according to the principle of transition dynamics:

A) South Korea will be richer than China, forever
B) South Korea will initially grow slower, but incomes in China and South Korea will converge
C) China and South Korea have different steady states
D) South Korea will initially grow faster, but incomes in China and South Korea will converge
E) China will initially grow slower, but incomes in China and South Korea will converge