All of the Following Contribute to Low Investment Spending in DVCs

question 117

Multiple Choice

All of the following contribute to low investment spending in DVCs except

• A) low rates of saving.
• B) inadequacy of public capital goods (infrastructure).
• C) political instability.
• D) expensive labor.

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Definitions:

Transactions Costs

The expenses beyond the price of the product that buyers and sellers incur when making a transaction, such as fees, taxes, or other expenses.

Interest Rate

The cost of borrowing money or the compensation for lending money, usually expressed as a percentage of the principal amount per period.

Rational Investor

A person who utilizes logical analysis for making investment choices, with the goal of maximizing gains and reducing risks.

Interest Rate

The cost of borrowing money or the rate paid on deposits, serving as the price of credit or savings in the financial market.