Developing Countries with Low Saving Rates and Poor Levels of Health

question 172

Multiple Choice

Developing countries with low saving rates and poor levels of health and education are likely to experience

• A)high levels of foreign direct investment.
• B)easy access to financial backing from banks.
• C)rapid growth in household incomes.
• D)low rates of growth in real GDP per capita.

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Definitions:

Hidden Tax

A non-obvious tax or financial burden on consumers that is not directly imposed by legislation but occurs through regulation or other means.

Value-Added Tax (VAT)

A type of consumption tax that is placed on a product whenever value is added at a stage of production and at the point of retail sale.

Tax Burden

The overall impact of taxes on an individual's or company's financial well-being, often expressed as a percentage of income or revenue.

Proportional

Pertaining to a relationship where changes in one quantity result in proportional changes in another quantity.