Which of the following is NOT a contributing factor into why the high-growth Asian economies were able to rapidly accumulate physical and human capital?
A)A stable macroeconomic environment meant low inflation.
B)Loans from multilateral institutions such as the IMF, the World Bank, and regional development banks.
C)The demographic transition meant that the proportion of their population working was higher.
D)A rapid rise in income made greater amounts of savings possible.

Question

Quizplus · Accepted Answer

Loans from multilateral institutions such as the IMF, the World Bank, and regional development banks were not a contributing factor to the rapid accumulation of physical and human capital in high-growth Asian economies. In fact, many of these countries, such as China, initially rejected loans from such institutions in favor of domestic financing and foreign direct investment. Factors A, C, and D all contributed to the rapid accumulation of physical and human capital, as stable macroeconomic environments with low inflation encouraged savings and investment, a younger population meant a higher proportion of the population was working and contributing to economic growth, and a rapid rise in income allowed for greater amounts of savings and investment.

Which of the Following Is NOT a Contributing Factor into Why