What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?
A) The interest rate paid on money kept in a bank in DVCs is not as high as the interest rate on money kept in a bank in an IAC.
B) Capital flight reduces investment opportunities and the need for saving in DVCs.
C) There is a continual brain drain that removes skilled labor from the work force and reduces labor productivity and the need for saving.
D) The domestic output of DVCs is so low that the absolute volume of saving is small.
Correct Answer:
Verified
Q161: The vicious circle of poverty in the
Q163: Many economists believe that the key to
Q169: Most economists agree that government efforts in
Q173: Which of the following seems to be
Q174: Which of the following is most characteristic
Q177: Which of the following is not an
Q180: An institutional change that is needed in
Q209: Capital flight is a problem facing DVCs
Q210: Which of the following is not a
Q218: The "vicious circle of poverty" for developing
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents