Finding the right balance between investing in physical capital funding current consumption:

Question

Quizplus · Accepted Answer

Poorer countries often struggle to invest in physical capital while simultaneously funding current consumption, as they have limited resources and may have pressing immediate needs for basic necessities such as food and shelter. Richer countries have more resources available and may be able to invest in physical capital while still maintaining a high standard of current consumption.

Finding the Right Balance Between Investing in Physical Capital Funding