At the Beginning of the Year, One Developing Country (DVC)has

question 117

Multiple Choice

At the beginning of the year, one developing country (DVC) has a real income per capita of $800. In a developed country (IAC) , the real income per capita is $30,000. Both countries experience a 4 percent growth rate for the year. At the end of the year, the absolute income gap between these two countries will have increased from $29,200 to

• A)$30,368.
• B)$31,200.
• C)$30,120.
• D)$32,032.

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