When property rights are vaguely defined, externalities cannot exist

If a rich country grows at a faster rate than a poor one, then

A) the gap in their standard of living will widen over time. B) the gap in their standard of living will close over time. C) the difference in their living standards will not change over time. D) whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates.

Other things equal, the ________ the real interest rate, the ________ the potential pool of borrowers

A) higher; less risky B) higher; more risky C) lower; smaller D) lower; less qualified