Explanation:
Keynes introduced the concept of Marginal Efficiency of Capital (MEC), which is the expected rate of return on an additional unit of capital asset.
In the context of growth empirics, 'Conditional Convergence' means that:
A.All countries converge to the same income level regardless of fundamentals
B.There is no convergence of any kind
C.Countries converge to their own steady-state levels of income, which may differ because of differences in saving rates, population growth and technology
Explanation:
Conditional convergence is the prediction that countries converge to their own steady states determined by their particular saving rates, population growth rates and levels of technology; poorer countries grow faster only after controlling for these differences.
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