What is the problem with saving in DVCs, even when saving as a percentage of domestic output is the same as in industrially advanced countries?
A. The interest rate paid on money kept in a bank in DVCs is not as high as the interest rate on money kept in a bank in an IAC
B. Capital flight reduces investment opportunities and the need for saving in DVCs
C. There is a continual brain drain that removes skilled labor from the work force and reduces labor productivity and the need for saving
D. The domestic output of DVCs is so low that the absolute volume of saving is small
D. The domestic output of DVCs is so low that the absolute volume of saving is small
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A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases in two cities
In Philadelphia, daily egg purchases increased from 6000 to 8000 dozens; in nearby Dover, Delaware, daily egg purchases increased from 300 to 400 dozens. The price elasticity of demand is therefore A) lower in the smaller city as would be expected. B) greater in the smaller city as would be expected. C) certainly affected by population differences in different markets. D) the same in Philadelphia as in Dover.
When grocery stores offer discount coupons on Sunday papers, it is trying to
a. Price discriminate b. Undercut its competition c. Reward the frequent readers d. Provide a social service