Most of the DVCs Find It Difficult to Accumulate Capital

question 136

Multiple Choice

Most of the DVCs find it difficult to accumulate capital goods because

• A)the terms of trade prohibit the inflow of private capital from the advanced nations.
• B)it is very difficult to restrict consumption and thus to free resources for capital goods production.
• C)domestic monetary policies designed to achieve price stability result in low interest rates, thereby discouraging investment.
• D)investment is interest inelastic in DVCs.

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Definitions:

Rightward Shift

In economic graphs, a movement to the right of a curve, indicating an increase in supply or demand depending on the context.

Home-Delivered Pizza

Pizza that is made and delivered directly to a customer's home by a restaurant or pizza delivery service.

Population

The entire group of individuals or instances about whom we seek to make conclusions in statistical analysis or the number of inhabitants in a particular region or place.

Increase in Demand

A situation where there is a rise in the quantity of a product or service that consumers are willing and able to purchase at existing prices.