A Factor That Limits the Amount of Saving in Developing

question 188

Multiple Choice

A factor that limits the amount of saving in developing countries is the fact that

• A) the banking system does not encourage saving.
• B) there is too much foreign aid, so savings is not needed.
• C) the level of aggregate domestic output is low.
• D) the government controls financial institutions and makes it difficult for people to save.

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Definitions:

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