Multiple Choice
Which of the following is a reason why a country barely at subsistence levels cannot achieve growth very easily?
A) It cannot decrease capital goods in order to increase consumption goods.
B) The lower income means that Say's law does not apply here.
C) Too much savings exist and therefore it remains underutilized.
D) It cannot decrease consumption goods in order to increase capital goods.
E) It cannot decrease capital goods in order to also decrease consumption goods.
Correct Answer:
Verified
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