Convergence will not happen if economies around the world have:
A)different savings rates.
B)different population growth rates.
C)different optimum levels of capital per worker, k*.
D)all of the above.

Question

Quizplus · Accepted Answer

All of these factors can impact a country's economic growth rate and lead to divergent outcomes among economies. If one country has a higher savings rate, it may be able to invest more in productive capital and achieve higher economic growth, while a country with a lower savings rate may struggle to achieve the same level of growth. Similarly, differences in population growth rates can impact the size and composition of the labor force, which can impact productivity and economic growth. Finally, differences in optimal levels of capital per worker (k*) can impact the ability of countries to achieve long-term growth and economic convergence. Therefore, all of these factors can influence the likelihood of economic convergence among countries.

Convergence Will Not Happen If Economies Around the World Have