Suppose the Romer Model Parameters in East Timor Are

question 26

Multiple Choice

Suppose the Romer model parameters in East Timor are
,
,
,and
;while in North Timor they are
,
,
,and
;then:

• A)neither country grows.
• B)East Timor's per capita income growth rate is 20 percent and North Timor's is 1 percent.
• C)East Timor's per capita income growth rate is 5 percent and North Timor's is 0.05 percent.
• D)East Timor's per capita income growth rate is 100 percent and North Timor's is 1 percent.
• E)each country's per capita income growth rate is 20 percent.

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