Some Poor Countries Appear to Be Falling Behind Rather Than

question 88

Multiple Choice

Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor county to catch up?

• A) The poor country has outward-oriented trade policies.
• B) The poor country allows foreign direct investment.
• C) The poor country has poorly developed property rights.
• D) All of the above are correct.

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Definitions:

Amortization

The gradual reduction of a debt over a period of time through regular payments that cover principal and interest.

Semiannually

Occurring twice a year or every six months.

Interest Payments

The amount of money paid regularly (typically annually or semiannually) for the use of borrowed funds.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date at a specified call price.