Why Do Very Small Differences in Annual Growth Rates Amount

Why do very small differences in annual growth rates amount to big differences in the degree of long-term economic growth?

A) Because the faster-growing countries gain a political advantage over poorer countries, and use that advantage for their economic gain.
B) Because the annual growth rate is compounded over time.
C) Because the slower-growing countries save too much.
D) Because the slower-growing countries don't export enough.

Correct Answer:

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