A factor that limits the amount of saving in developing countries is the fact that:

Question

Quizplus · Accepted Answer

The level of aggregate domestic output (GDP) is low in developing countries, which means people have less income to save. Additionally, in some cases, the banking system may not be well-developed or accessible, making it difficult for people to save, but this is not always the case. Foreign aid is also unlikely to be a major factor limiting saving, and government control of financial institutions may or may not be a limiting factor depending on specific policies and circumstances.

A Factor That Limits the Amount of Saving in Developing