Economies Are Said to Have Converged If They

question 49

Multiple Choice

Economies are said to have converged if they:

• A)have the same growth rate in the transition.
• B)have the same capital per worker, k*, in the steady state.
• C)have the same saving rate.
• D)all of the above.

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Definitions:

Capital Assets

Long-term assets acquired or owned by a company, used in its operations and not expected to be converted into cash within a year.

Exchange Rates

The price at which one country's currency can be converted into another's, critical for international trade and finance.

Amortization Expense

The portion of the cost of an intangible asset that is allocated as an expense in a company's income statement over a set period.

Capital Assets

Long-term assets acquired or owned by a business or individual for the purpose of generating income or investment.