Convergence will not happen if economies around the world have:
A)different saving rates.
B)different technologies.
C)different population growth rates.
D)all of the above.

Question

Quizplus · Accepted Answer

Different saving rates, technologies, and population growth rates will result in differing levels of productivity and economic growth, which will prevent convergence from occurring. The countries with higher savings rates and more advanced technologies will continue to grow at a faster pace than countries with lower savings rates and less advanced technologies, maintaining the gap between them. Additionally, differences in population growth rates can result in differences in the size of the labor force and affect productivity levels, further preventing convergence from happening.

Convergence Will Not Happen If Economies Around the World Have