Empirical Evidence from 1960 to 2010 Shows That Convergence in Economic

question 122

Multiple Choice

Empirical evidence from 1960 to 2010 shows that convergence in economic growth is occurring in which of the following cases?

• A)Low-income industrial countries are catching up to high-income industrial countries.
• B)Low-income developing countries are catching up to high-income industrial countries.
• C)Low-income industrial countries are catching up to high-income developing countries.
• D)All low-income countries are catching up to all high-income countries.

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Definitions:

Interest Rate

The percentage charged on a loan or paid on savings, representing the cost of borrowing or the gain on saved funds.

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, unlike the public sector, which is controlled by the government.

Credit Demand

The desire or willingness of consumers and businesses to borrow money at a given interest rate.

Discretionary Policy

Economic or fiscal policy based on judgment and decision-making in response to changing economic conditions, rather than set by predetermined rules.