All of the Following Contribute to Low Investment Spending in DVCs

question 117

Multiple Choice

All of the following contribute to low investment spending in DVCs except

• A) low rates of saving.
• B) inadequacy of public capital goods (infrastructure).
• C) political instability.
• D) expensive labor.

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Definitions:

Standard Deviation

Standard deviation measures the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.

Risky Asset

An asset that has a significant degree of price volatility due to its sensitivity to market fluctuations.

Risk-free Asset

An investment with a certain rate of return, typically considered to be government bonds or similar vehicles with no risk of financial loss.

Total Risk

The overall uncertainty associated with an investment decision, encompassing both systematic and unsystematic risk.