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Suppose the country of Ancor has a savings rate of 20%. population growth of 3% and depreciation rate of 5% Another country. Creed, has a
Suppose the country of Ancor has a savings rate of 20%. population growth of 3% and depreciation rate of 5% Another country. Creed, has a savings rate of 25%, population growth of 3% and depreciation rate of 5%. Suppose both countries have the same production function and currently the same level of capital per person. According to the Solow model, what best describes the steady states and growth paths of these two countries in the long run? 0 Both countries have the same steady state. GDP per capita will grow at the same rate for both countries and converge to the same level of GDP per capital. 0 Both countries have the same steady state. GDP per capita will grow at different rates on each country but will converge to the same level of GDP per capital. 0 Each country has a different steady state. GDP per capita will grow at the same rate for both countries but to different levels of GDP per capita. 0 Each country has a different steady state. GDP per capita will grow at different rates on each country and to different levels of GDP per capita
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