The nation of Futura has an actual capital-labour ratio that is in steady state.Futura will experience
A) no growth from convergence and the economy will remain on its balanced growth path.
B) positive growth from convergence to keep the economy on its balanced growth path.
C) positive growth from convergence, but the growth will be less than the balanced growth rate in order to remain on its balanced growth path.
D) negative growth from convergence to offset the increase in the balanced growth rate in order to remain on its balanced growth path.
Correct Answer:
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