Two countries, A and B, differ in population growth rates and rates of investment. Country A has an investment rate of 10% of GDP and a population growth rate of 1% per year, while country B has an investment rate of 20% of GDP and its population grows at 4% per year. Both countries have the same rate of depreciation of 5% and = 1/3.

Use the Solow model to calculate the ratio of their steady state levels of income per capita. How can you explain the result?