The catch-up effect tends to

Name: The catch-up effect tends to
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The catch-up effect refers to the tendency of poorer countries to grow at a faster rate than richer countries, due to factors such as investment in new technology and infrastructure. However, this effect tends to slow down over time, as these economies reach a certain level of development and face diminishing returns to capital. Therefore, choice B - slow down over time - is the best answer.

The Catch-Up Effect Tends to