Which Statement Best Defines the Catch-Up Effect

question 170

Multiple Choice

Which statement best defines the catch-up effect?

• A) It is the idea that saving will always "catch up" with investment spending.
• B) It is the idea that it is easier for a country to grow fast and "catch up" with richer countries if it starts out relatively poor.
• C) It is the idea that rich countries aid relatively poor countries so as to help them "catch up."
• D) It is the idea that if investment spending is low, increased saving will help investment to "catch up."

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Definitions:

Ownership Interest

A legal or equitable claim in property, providing the holder with certain rights, such as use, enjoyment, and control.

Adverse Possession

Adverse possession is a legal principle under which a person who occupies someone else's land for an extended period, meeting certain requirements, may acquire legal ownership of that land without compensation.

Owner's Permission

Authorization granted by the owner for someone else to use or manage their property or assets.

Quitclaim Deed

A legal document transferring a grantor's interest in a property without making any guarantee of clear title.