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In a Baby Solow model, consider two countries are identical in every way, except one: One country has a savings rate (strictly between 0 and

In a Baby Solow model, consider two countries are identical in every way, except one: One country has a savings rate (strictly between 0 and 1) that is twice that of the other.

In the long run (steady state), what will be the ratio of GDP per capita between these two countries, if we put the high-savings country in the top of the ratio, in the numerator?

  1. 1.414 = 20.5
  1. 2
  1. 4
  1. ln(2)

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