Less Developed Countries Are Often Characterized by Imperfect Capital Markets

question 48

Multiple Choice

Less developed countries are often characterized by imperfect capital markets.Assuming that the LCH applies to these countries and that a large proportion of the population is below fifty the

• A)MPC should be relatively high.
• B)MPC should be relatively low.
• C)frequency of liquidity constraints is low.
• D)sensitivity of consumption to loans is low.

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Definitions:

Reflexes

Automatic responses to specific stimuli that do not require conscious thought, demonstrating the body's inherent ability to protect and organize itself.

Responsiveness

The quality of reacting quickly and positively, often referring to the ability of handling and addressing needs or changes effectively.

Couvade Syndrome

A condition where expectant fathers experience pregnancy symptoms like nausea, weight gain, and mood swings.