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:

Subjects

Individuals or entities that are studied or observed in a research experiment or survey to collect data about them.

F Statistic

A ratio used in ANOVA tests that quantifies the amount of variation between groups compared to within groups.

Capital Intensity Ratio

A measure of the amount of capital needed per dollar of revenue, indicating the investment required for a company to maintain its current level of production.

Full Capacity

The maximum level of output that a company can sustain over a period of time without increasing the production resources.