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Exercise 4.4 ( TFU ) . Indicate whether the following statements are true, alse, or uncertain, and
explain. 1. Countries A and B are identical, except that in country A the population growth rate is
2 percent per year whereas in country B it is 3 percent. According to the Solow model sooner or
later people in country A will enjoy a higher standard of living than people in country B.

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