Other Things Equal,relatively Poor Countries Tend to Grow

question 13

Multiple Choice

Other things equal,relatively poor countries tend to grow

• A)slower than relatively rich countries;this is called the poverty trap.
• B)slower than relatively rich countries;this is called the fall-behind effect.
• C)faster than relatively rich countries;this is called the catch-up effect.
• D)faster than relatively rich countries;this is called the constant-returns-to-scale effect.

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Definitions:

Money Market Accounts

Financial accounts that typically offer higher interest rates compared to savings accounts, often used for short-term financial needs.

Concentrated Investments

Concentrated investments involve a portfolio that is heavily invested in a small number of assets, increasing risk due to lack of diversification.

Variable Annuity

A type of annuity plan that provides a retirement income, where the payments can vary depending on the performance of the investment options chosen by the annuitant.

Life Expectancy

The average period that an organism, individual, or object is expected to live or function.