Suppose there are two countries that are identical in every way with the following exception: Country A has a lower depreciation rate (δ) than country B. Given this information, we know with certainty that

A) the growth rate will be the same in the two countries.
B) the growth rate will be higher in A than in B.
C) K/N will be higher in B.
D) Y/N will be higher in B.

ANSWER:

A