Which of the Following Statements About Conditional Convergence Is Not

question 30

Multiple Choice

Which of the following statements about conditional convergence is not true?

• A) The evidence of convergence for the world as a whole is for conditional convergence.
• B) The gap between rich and poor countries is not narrowing.
• C) Countries are moving toward a common steady state.
• D) The augmented Solow model better explains cross-country variation in income per capita than the original Solow model.
• E) Variables that affect growth include saving and population growth rates, schooling, openness to trade, and political and geographic variables.

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Definitions:

Domestic Investment

The total investment in physical assets such as buildings and machinery within a country's borders.

Goods And Services

Physical items and intangible benefits provided to satisfy the wants and needs of consumers.

Assets Abroad

Financial holdings, investments, or physical properties located outside one's home country, potentially subject to taxation and regulation in multiple jurisdictions.

Net Capital Outflow

The difference between a country's total exports of capital and its total imports of capital over a specific period of time.