Developing countries with low saving rates and poor levels of health and education are likely to experience
A)high levels of foreign direct investment.
B)easy access to financial backing from banks.
C)rapid growth in household incomes.
D)low rates of growth in real GDP per capita.
E)lower birth rates.

Question

Quizplus · Accepted Answer

Low saving rates and poor levels of health and education indicate a lack of productive resources to support economic growth. Therefore, these countries are likely to experience low rates of real GDP per capita growth. A) High levels of foreign direct investment are unlikely if the conditions for investment, such as a skilled workforce and a stable political environment, are not present. B) Easy access to financial backing from banks is also unlikely for the same reasons as A. C) Rapid growth in household incomes is unlikely without sustained economic growth and increased productivity. E) Lower birth rates may occur as a result of increased education and access to healthcare, but this is not necessarily a direct consequence of low saving rates and poor levels of health and education.

Developing Countries with Low Saving Rates and Poor Levels of Health