"Countries are poor because they cannot afford to save and invest" is called the:
A. vicious circle of poverty.
B. savings-investment trap.
C. LDC trap.
D. cycle of insufficient credit.
Answer: A
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Refer to Scenario 1 . What is the economic significance of 25 fish captured and 25 crabs captured?
What will be an ideal response?
Debt can create inflation
Indicate whether the statement is true or false
The ability of a government to fix its currency's exchange rate is limited by the size of its reserves
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of political action that reflects the shortsightedness effect?
a. budget surpluses b. the promise of future benefits without providing for their funding c. spending on roads and highways d. spending on programs that transfer income from the rich to the poor