Conditional convergence is the tendency of economies to converge:
A)all the time.
B)when they are similar.
C)only when economic conditions are good.
D)only when currencies are stable.

Question

Quizplus · Accepted Answer

Conditional convergence suggests that economies are likely to converge if they have similar characteristics such as institutions, human capital, and technology. Therefore, convergence is more likely to occur when two economies are similar rather than all the time, or only when economic conditions are good, or only when currencies are stable.

Conditional Convergence Is the Tendency of Economies to Converge