The Great Divergence refers to:
a. The collapse of communism
b. Asias rise after World War II
c. Chinas rapid growth after Maos death
d. The decline of Asia after the industrial revolution
e. none of the above
Question 2
The real risk-free interest rate is equal to:
a. The difference between the nominal interest rate and expected inflation.
b. The tradeoff that society must make between consuming now and consuming later.
c. The rate at which the International Monetary Fund borrows from the World Bank.
d. The rate at which banks lend to their best customers (i.e., lowest credit risk).
e. None of the above is correct.
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