Countries that are above the line in Figure 9.1 have relatively high levels of real GDP per capita for their levels of financial development, and countries that are below the line have relatively low levels of real GDP per capita for their levels of financial development. Holding constant all other factors that might affect a country€™s rate of economic growth, would you expect future growth rates to be higher for countries above the line or for countries below the line? Briefly explain.

Figure 9.1

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S80,000 Switzerland Qatar 70,000 Denmark 60,000 Germany. United States 50,000 Belgium Japan 40,000 Hong Kong Italy Spain 30,000 Slovenla ФСургиs Korea 20,000 Uruguay 10,000 China reg Braži Vietnam 100 50% indla 150 200 250 300 Financial development (percent of GDP) Real GDP per capita