Most of the LDCs Find It Difficult to Accumulate Capital

question 23

Multiple Choice

Most of the LDCs find it difficult to accumulate capital goods because

• A)the terms of trade prohibit the inflow of private capital from the advanced nations.
• B)it is very difficult to restrict consumption in order to free resources for capital goods production.
• C)domestic monetary policies designed to achieve price stability result in low interest.
• D)investment is interest inelastic in LDCs.

---

Definitions:

Extreme Poverty

A condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information, typically measured by international standards.

Out Of Poverty

A term referring to the transition or process by which individuals or groups move from a state of poverty to a more economically stable or prosperous condition.

Hard Work

Consistent effort and dedication towards completing tasks or achieving goals, often considered a key to success.

Majority

More than half of a particular group or amount, often referring to the greater part of a specific population or quantity.