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 2 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.
Correct Answer:

Verified
Correct Answer:
Verified
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