For a low-income country to develop into a high-income country, ____ is (are) needed.

Question

Quizplus · Accepted Answer

Sustained economic growth is necessary for a low-income country to develop into a high-income country. It involves an increase in production, trade, and investment over a period of time, leading to a rise in income levels and improvements in living standards. A sustained and rapid expansion in the money supply (A) may lead to inflation and devalue the currency, making it more difficult for the country to attract foreign investment. Tax breaks on consumption goods (C) may promote consumption, but may not necessarily result in sustained economic growth. Deflation (D) can cause a decrease in economic activity, leading to job losses and a decline in income levels.

For a Low-Income Country to Develop into a High-Income Country