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:

10-Year Bond

A long-term debt security issued by governments or corporations with a maturity of ten years.

Transaction

The act of conducting a trade or business deal involving the exchange of goods, services, or financial assets.

Signaling

A concept in economics and finance where agents indirectly convey information about their qualities or intentions through their actions.

Liquidity

With respect to a company, the ability to pay its bills in the short run. With respect to an asset, the readiness with which it can be converted to cash.