Suppose the Romer Model Parameters in East Timor Are

question 104

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 2 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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