Asked by Nicholas Paradas on Jun 22, 2024

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Which of the following is typically not a problem for low-income DVCs?

A) capital flight
B) "brain drain"
C) high saving rates that slow aggregate demand growth
D) poor infrastructure

Capital Flight

The sudden and large-scale withdrawal of capital or assets from a country due to economic or political instability.

"Brain Drain"

The emigration of highly trained or qualified people from a particular country.

Aggregate Demand

A schedule or curve that shows the total quantity of goods and services that would be demanded (purchased) at various price levels.

  • Review the factors leading to and barriers faced by low-income DVCs, particularly focusing on income inequality, demographic expansion, and obstacles in investment.
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NUR AMIZA SYAZWINA BINTI AZMI / UPMJun 25, 2024
Final Answer :
C
Explanation :
High saving rates that slow aggregate demand growth are typically not a problem for low-income Developing and Vulnerable Countries (DVCs). These countries often face issues like capital flight, brain drain, and poor infrastructure, but high saving rates slowing down aggregate demand is not commonly among their economic challenges. Instead, low-income DVCs usually struggle with low saving rates due to limited income and high levels of poverty.