Poor countries generally have lower saving rates than rich countries due to various factors such as low income levels, limited access to financial services, and high levels of economic uncertainty. This makes it difficult for them to accumulate a large volume of savings.

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Poor Countries Have

Question 136

Multiple Choice

Poor countries have

A) the same saving rates as rich countries.
B) lower saving rates than rich countries.
C) frequent current account surpluses.
D) negative saving rates.
E) the same saving rates as rich countries, but a smaller volume of savings.

Correct Answer: