A Poverty Trap Is

question 107

Multiple Choice

A poverty trap is:

• A) what develops when poor nations save "too much."
• B) a self-reinforcing mechanism that causes the poor to stay poor.
• C) what develops when nations devote too much to foreign aid and not enough to domestic poverty.
• D) the lowest quartile of income earners in a given country, because it is highly unlikely they will ever move out regardless of policy.

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Definitions:

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