If two nations have different per capita income levels and their rates of economic growth are identical, then the absolute per capita income differential
A) will remain constant.
B) may either widen or diminish.
C) will diminish.
D) will widen.

Question

Quizplus · Accepted Answer

If the two nations have different per capita income levels and their rates of economic growth are identical, the nation with the higher per capita income will experience a higher absolute increase in income than the nation with the lower income. Therefore, the income differential will widen over time.

If Two Nations Have Different Per Capita Income Levels and Their