A Factor That Limits the Amount of Saving in Developing

question 8

Multiple Choice

A factor that limits the amount of saving in developing countries is the fact that:

• A) The banking system does not encourage saving
• B) There is too much foreign aid so savings is not needed
• C) The level of aggregate domestic output is low
• D) The government controls financial institutions and makes it difficult for people to save

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Definitions:

Woody

Describing plant tissue that is hard and fibrous, typically found in trees and shrubs, providing structural support.

Herbivores

Organisms that primarily feed on plants, including leaves, stems, and roots.

Sunlight

The natural light that comes from the sun, which is a combination of visible, ultraviolet, and infrared radiation.

Rainfall

The precipitation of water from clouds in the form of droplets, a crucial component of the water cycle that supports terrestrial life.