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:

Matrix Structures

An organizational structure that assigns specialists from different functional departments to work on one or more projects.