The Lack of Capital in Developing Nations Causes

question 43

Multiple Choice

The lack of capital in developing nations causes

• A) labor productivity to remain low.
• B) the savings rate to be too high.
• C) output to be low in the present but high in the future.
• D) consumption rates to be too high.

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Definitions:

Weekly Interest Rate

The interest rate applied to a loan or savings, calculated and compounded on a weekly basis.

Average Daily Receipts

The average amount of cash received by a business each day over a specific period, often used to gauge the company's liquidity and cash flow efficiency.

Collection Delay

The time lag between when a company issues an invoice and when it actually receives payment from the customer.

Customers

Individuals or organizations that purchase goods or services from a business, thereby generating revenue for the company.