Which Statement Best Defines the Catch-Up Effect

question 170

Multiple Choice

Which statement best defines the catch-up effect?

• A) It is the idea that saving will always "catch up" with investment spending.
• B) It is the idea that it is easier for a country to grow fast and "catch up" with richer countries if it starts out relatively poor.
• C) It is the idea that rich countries aid relatively poor countries so as to help them "catch up."
• D) It is the idea that if investment spending is low, increased saving will help investment to "catch up."

---

Definitions:

Embryo

An early stage of development in multicellular organisms after fertilization, during which the organism undergoes rapid cell division and differentiation.

Toxins

Substances that are poisonous or harmful to organisms, produced naturally by living things or created artificially.

Serving Size

A standardized amount of food that helps determine nutritional content, often used for dietary guidelines and food labeling.

Neophobia

An extreme or irrational fear or dislike of anything new, novel, or unfamiliar.