Currently, China and India are growing much faster than the United States and Western Europe. This high rate of growth will eventually and naturally slow down in the future because:

a. China and India will exhaust their natural resources.
b. Actually, there is no economic reason for China and India's growth rates to fall in the future.
c. Current account surpluses will eventually cause capital flight from these nations which will lower the value of their currency and reduce their growth rates.
d. Consumption will increase and crowd out investment spending.
e. Diminishing returns will eventually set in.


.E

Economics

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What will be an ideal response?

Economics