According to the supply side of the vicious circle theory of development a country is poor because .
A)Technology levels do not allow for self sufficiency
B)It was previously too poor to save and invest
C)Underemployment is too widespread
D)Resource allocation is poor

Question

Quizplus · Accepted Answer

The supply side of the vicious circle theory suggests that a country remains poor because it lacks the savings and investments needed for economic growth, which is a result of being too poor initially to generate these savings.

According to the Supply Side of the Vicious Circle Theory