The neoclassical growth theory implies that
A) the marginal product of capital is low in poor countries.
B) the rate of return on capital is low in poor countries.
C) there should be large flows of capital from rich countries to poor countries.
D) all of the above.
C
You might also like to view...
What were the major reasons for the lack of sustained growth before modern times?
What will be an ideal response?
In a large open economy, what is the source of the domestic supply of loanable funds?
A. Net capital outflow B. National saving and investment C. National saving D. Investment
How would you characterize the main difference between causes of death in developing and developed countries? What are the implications for how to reduce the death rate?
What will be an ideal response?
Total capital is the sum of
What will be an ideal response?