The catch-up effect is the idea that a. it is harder for a country to grow...

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The catch-up effect is the idea that a. it is harder for a country to grow fast when it is relatively poor. b. savings will a

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Answer 1

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Q.

Catch-up effect

c) poor countries with small capital stock will grow faster than that wealthy countries when investment increases.

The idea of catch-up effis that the per-capita incomes of poorer economics tend to grow at faster rates than that of richer economies. Then all economies would eventually converge in terms of per capita income.

This hypothesis is also called as convergence.

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33. The "Catch-Up effect" refers to: a. a situation where poor countries will never grow faster...

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The catch-up effect is the idea that a. it is harder for a country to grow...

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