The convergence theory states that:
A. poorer countries will grow faster than rich ones.
B. rich countries will grow faster than poor ones.
C. poor countries tend to converge together and stagnate.
D. rich countries tend to leapfrog ahead maintaining the gap in global development.
A. poorer countries will grow faster than rich ones.
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In an IS-LM model with an upward-sloping LM curve and a downward-sloping IS, how does the expenditure multiplier compare to [1/(1-b)]?
A) It is equal to it. B) It is greater. C) It is smaller. D) Cannot be answered with the information given.
Gemma and Emily expect investments A and B to yield an annual return of 15 percent and 10 percent respectively. While Gemma invests in A, Emily invests in B. This implies that Gemma has a higher risk tolerance than Emily
Indicate whether the statement is true or false