Most Developing Countries Rely on Foreign Financing Because:​

question 60

Multiple Choice

Most developing countries rely on foreign financing because:​

• A)their governments are unstable and run on deficits.
• B)foreign financing is more reliable than domestic investments.
• C)these countries do not generate enough savings to fund investments.
• D)these countries do not generate enough savings to fund investments
• E)foreign countries are more than willing to invest in developing countries.

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Definitions:

Workers

Individuals who perform tasks or services for wages or salary in various types of employment or labor.

Aggregate Supply Curve

Represents the total quantity of goods and services that producers in an economy are willing and able to supply at different price levels.

Potential Output

The maximum level of economic productivity that can be maintained in the long run without causing inflation to rise.

Governmental Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, and taxes.