The vicious circle of poverty refers to the fact that in LDCs,
A) low living standards lead to declines in population growth.
B) too much spending leads to periods of recession.
C) people are poor because too much is spent on capital goods.
D) there are not enough people in the under-15 age groups.
E) poverty leads to low investment in capital goods.

Question

Quizplus · Accepted Answer

The vicious circle of poverty refers to the cycle in which poverty leads to low investment in capital goods, which in turn limits economic growth and perpetuates poverty. This cycle can be difficult to break without outside assistance, such as foreign aid or foreign investment.

The Vicious Circle of Poverty Refers to the Fact That