Which of the Following Is NOT a Contributing Factor into Why

question 26

Multiple Choice

Which of the following is NOT a contributing factor into why the high-growth Asian economies were able to rapidly accumulate physical and human capital?

• A)A stable macroeconomic environment meant low inflation.
• B)Loans from multilateral institutions such as the IMF, the World Bank, and regional development banks.
• C)The demographic transition meant that the proportion of their population working was higher.
• D)A rapid rise in income made greater amounts of savings possible.

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Definitions:

Demand for Dollars

Refers to the global desire or need for U.S. currency, driven by its use in international trade, investment, and as a reserve currency.

Balance of Payments Surplus

A situation where the total of the payments received from abroad exceeds the total of the payments made to abroad.

FX Reserves

Short for foreign exchange reserves; assets held on reserve by a central bank in foreign currencies, used to back liabilities on their own issued currency as well as to influence monetary policy.

Economic Fortune

The state of prosperity or success, especially as determined by economic variables such as income, employment, and market position.