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.

Question

Quizplus · Accepted Answer

Low saving rates and poor levels of health and education can hinder economic development and lead to low rates of growth in real GDP per capita. Without strong human capital and financial resources, countries may struggle to attract foreign direct investment and access financial backing from banks, which could further limit their potential for rapid growth in household incomes.

Developing Countries with Low Saving Rates and Poor Levels of Health