Suppose That Per Capita Income in Country A,a Developed Country,is

question 40

Essay

Suppose that per capita income in country A,a developed country,is $30,000 per year,and per capita income in country B,a developing country,is $5,000 per year.
(A)Why does economic theory predict that country B will eventually catch up with country A?
(B)Suppose country B's income per capita grows at 5 percent and country A's income per capita grows at 1 percent.Using the rule of 72,plot the growth path of income per capita relative to time for each country.Based on this graph,do you think country B will catch up with country A?
(C)Do you think country B will continue to grow at 5 percent?

Understand the benefits and functionalities of specific technological applications in sports management.

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Definitions:

Long-Term Investments

Investments that a company intends to hold for more than one year, including stocks, bonds, real estate, and other financial assets.

Bond Investment

A bond investment involves lending money to an issuer (either corporate or governmental) in exchange for fixed income payments over a set period, culminating in the return of the original investment.

Long-Term Investments

Investments in stocks, bonds, or other financial instruments that a company intends to hold for a period longer than one year.

Bond Investment

Purchasing debt securities issued by corporations or governments to finance their operations, typically yielding interest income.