Which of the Following Is a True Statement Regarding the Economic

question 2

Multiple Choice

Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?

• A)The growth model predicts that poor countries should catch up with rich countries,but developing countries are not catching up to lower-income industrialized countries as a group.
• B)The growth model predicts that poor countries will never catch up with rich countries,but lower-income industrialized countries are catching up to higher-income industrialized countries as a group.
• C)The growth model predicts that poor countries will catch up with rich countries,but lower-income industrialized countries are not catching up to higher-income industrialized countries as a group.
• D)The growth model predicts that poor countries will catch up with rich countries,and this is what we observe across all developmental categories of countries.

---

Definitions:

U.S. Government Securities

Financial instruments issued by the U.S. Treasury or federal government agencies to finance government spending and obligations.

Assets Component

Parts or elements that make up the total value of assets owned by an individual or organization.

Money Supply

The money supply is the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Money Supply

is the total amount of monetary assets available in an economy at any given time.