Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?
A) The growth model predicts that poor countries will catch up with rich countries, but lower-income industrialized countries are not catching up to higher-income industrialized countries as a group.
B) The growth model predicts that poor countries should catch up with rich countries, but developing countries are not catching up to lower-income industrialized countries as a group.
C) The growth model predicts that poor countries will catch up with rich countries, and this is what we observe across all developmental categories of countries.
D) The growth model predicts that poor countries will never catch up with rich countries, but lower-income industrialized countries are catching up to higher-income industrialized countries as a group.
B
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The major difference between stocks and bonds is
a. a stock is ownership in the corporation and a bond is a debt instrument of the corporation. b. a stock is a debt instrument of the corporation and a bond is ownership in the corporation. c. a stock has value in the marketplace and a bond does not. d. a bond has value in the marketplace and a stock does not.
In an inflationary expenditure gap, the equilibrium level of real GDP is:
A. Greater than planned investment B. Equal to full-employment GDP C. Greater than full-employment GDP D. Less than full-employment GDP