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1. Income per worker has been converging in both the rich countries and the poor countries. O converging in the rich countries, but not converging

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Income per worker has been converging in both the rich countries and the poor countries. O converging in the rich countries, but not converging in the poor countries. O converging in neither the poor nor the rich countries. O converging in the poor countries, but not converging in the rich countries.Consider the Chapter 9 inter-temporal model from class with perfect information where r is the real interest rate: A balanced-budget $1 tax cut today must be offset by a in the next period. $r tax increase $(1+r) tax increase O Another $1 tax cut O $1 tax increaseIf the marginal propensity to consume were to increase, it would mean that people were, on average, than they were before and that tax policy would be to increase utility than it was before Q Worse off; less likely .3. Betteroff', more likely Q Worse off; more likely Q Better off; less likely The spread between the interest offered on a risky bond and that offered on a US government bond is, on average, Pro-cyclical O Counter-cyclical O Unrelated to the business cycle

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