What is the difference between the structural stagnation hypothesis and the secular stagnation theory?
A)Structural stagnation sees globalization as the cause of a stagnation, while secular stagnation sees too little investment as the cause.
B)Structural stagnation sees too little investment as the cause of a stagnation, while secular stagnation sees globalization as the cause.
C)Structural stagnation sees foreign countries moving down the value-added chain as the cause of a stagnation, while secular stagnation sees foreign countries moving up the value-added chain as the cause of a stagnation.
D)There is no difference, they both attribute stagnation to too little investment.

Question

Quizplus · Accepted Answer

Structural stagnation hypothesis attributes economic stagnation to globalization and its impacts, such as offshoring and international competition, while secular stagnation theory focuses on the chronic deficiency of investment relative to savings, leading to persistently low interest rates and sluggish economic growth.

What Is the Difference Between the Structural Stagnation Hypothesis and the Secular