Suppose the Romer model parameters in East Timor are ,
, while in North Timor they are
,
, then:
A) neither country grows
B) East Timor's per capita income growth rate is 20 percent and North Timor's is 2 percent
C) East Timor's per capita income growth rate is 5 percent and North Timor's is 0.05 percent
D) East Timor's per capita income growth rate is 100 percent and North Timor's is 1 percent
E) each country's per capita income growth rate is 20 percent
Correct Answer:
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