Which of the Following Describes the Vicious Circle of Poverty

question 206

Multiple Choice

Which of the following describes the vicious circle of poverty?

• A)Government spending for public goods is inflationary, and this undermines incentives to save and invest.
• B)Higher incomes increase consumption at the expense of capital accumulation, which causes income to fall.
• C)Low per capita incomes cause low levels of saving and investment, which mean low productivity and therefore low incomes.
• D)A growing national income increases the demand for money, which increases the interest rate and reduces investment.

---

Definitions:

Dissonance Reduction

Involves efforts or strategies to alleviate the discomfort caused by holding two or more conflicting cognitions, such as beliefs, attitudes, or behaviors.

Cognitive Dissonance

A psychological phenomenon involving discomfort felt by an individual when they hold conflicting beliefs, ideas, or values at the same time.

Nutrition Expert

A professional who specializes in the study and practice of nutrition, including dietary choices and their impact on health.

Dissonance Resolution

The process of reducing conflict between one's actions and beliefs by altering either the actions, beliefs, or both.