Nations with low levels of GDP per capita may converge to richer nations if
A) nations with high levels of income experience a continuously increasing growth rate.
B) nations with lower levels of income grow more quickly than those with higher levels of income.
C) nations with lower levels of income grow more slowly than those with higher levels of income.
D) nations with lower levels of income spend less on investment.
B
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In the presence of external economies of scale, trade
A) may or may not improve welfare in both countries. B) will unambiguously improves welfare in both countries. C) will unambiguously worsens welfare in both countries. D) will unambiguously worsen welfare in the exporting country and improve welfare in the importing country. E) will unambiguously improve welfare in the exporting country and worsen welfare in the importing country.
From 1995-2007, the Irish economy ________
A) suffered from severe unemployment, famine and labor migration B) witnessed a boom in the real economy, but suffered through a collapse in asset prices C) enjoyed one of the highest growth rates in the world D) suffered through a period of prolonged deflation