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What Is the Premise Behind the Poverty Trap

Question 132

Multiple Choice

What is the premise behind the poverty trap?


A) Poorer countries have a harder time buying the things that will reduce poverty.
B) Richer countries can easily descend into poverty if they invest in the wrong industries.
C) Richer countries will spiral into poverty if they fail to invest enough in physical capital.
D) All of these describe the basic premise of the poverty trap.

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