If a Rich Country Grows at a Faster Rate Than

question 38

Multiple Choice

If a rich country grows at a faster rate than a poor one, then

• A)the difference in their living standards will not change over time.
• B)the gap in their standards of living will widen over time.
• C)the gap in their standards of living will close over time.
• D)Whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates.