Why Is Microcredit Considered by Many to Be Effective and Self

question 16

Multiple Choice

Why is microcredit considered by many to be effective and self targeted tool for reducing poverty?

• A) Low income earners are liquidity constrained
• B) High income earners are not likely to be liquidity constrained
• C) High income earners are unlikely to find the high interest rates attractive
• D) All of the above are correct.

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Definitions:

Direct Labor Cost

The total cost of all labor hours worked directly on a specific job or project.