What Is the Problem with Saving in DVCs, Even When

question 145

Multiple Choice

What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?

• A)The interest rate paid on money kept in a bank in DVCs is not as high as the interest rate on money kept in a bank in an IAC.
• B)Capital flight reduces investment opportunities and the need for saving in DVCs.
• C)There is a continual brain drain that removes skilled labor from the work force and reduces labor productivity and the need for saving.
• D)The domestic output of DVCs is so low that the absolute volume of saving is small.

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Definitions:

Natural Selection

Natural selection is a mechanism that can lead to adaptive evolution, whereby differences in the phenotypes of individuals cause some of them to survive and reproduce more effectively than others and therefore outcompete them.

Synapomorphy

A characteristic or trait that is shared by two or more taxonomic groups and is derived from their most recent common ancestor, indicating a phylogenetic relationship.

Molecular Phylogeny

The analysis of the molecular structure of DNA, RNA, or protein sequences to determine genetic relationships and evolutionary histories among different species.

Amino Acids

Organic compounds serving as the building blocks of proteins, crucial for life and involved in various metabolic processes.