"Countries Are Poor Because They Cannot Afford to Save and Invest

question 3

Multiple Choice

"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.

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Definitions:

Crystallized Intelligence

The ability to use learned knowledge and experience effectively.

Primary Mental Abilities

Fundamental skills and cognitive functions such as reasoning, memory, and perception that are considered essential for intelligence.

Inductive Reasoning

A rational procedure where several assumed or generally true statements are merged together to derive a particular outcome.

Word Fluency

The ability to rapidly retrieve words from memory, often tested by asking individuals to produce as many words as possible from a category in a limited time.