Which Statement Best Describes the Relationship Between the Initial Wealth

question 21

Multiple Choice

Which statement best describes the relationship between the initial wealth and the growth rate of a country?

• A) Countries with the highest growth rates over the past 140 years are the ones that had the highest level of real GDP 140 years ago.
• B) Countries that were rich 140 years ago had little fluctuation around their average growth rates during the past 100 years.
• C) Though the catch-up effect may suggest otherwise, the data show no strong relationship between initial conditions and growth rates.
• D) Over the past 140 years, the United States had the highest real GDP growth rate, and now it has the highest real GDP per person.

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