Most of the DVCs Find It Difficult to Accumulate Capital

Multiple Choice

Most of the DVCs find it difficult to accumulate capital goods because

A) the terms of trade prohibit the inflow of private capital from the advanced nations.
B) it is very difficult to restrict consumption and thus to free resources for capital goods production.
C) domestic monetary policies designed to achieve price stability result in low interest rates, thereby discouraging investment.
D) investment is interest inelastic in DVCs.