One reason why low-income countries lack physical capital is

Question

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Low-income countries typically have low savings rates due to their low living standards, which limits their ability to invest in physical capital. This makes it difficult for them to obtain the resources they need to build infrastructure, purchase equipment, and improve their technology. Option A is incorrect since financial institutions are not necessarily required for countries to accumulate capital, and option C is unlikely, as it would be impossible for a country to invest all of its savings in military equipment with no regard for civilian infrastructure. Option D may play a role in economic development, but it is not the main reason why low-income countries lack physical capital.

One Reason Why Low-Income Countries Lack Physical Capital Is