The "Vicious Circle of Poverty" for Developing Nations Can Best

Multiple Choice

The "vicious circle of poverty" for developing nations can best be described by:

A) Low levels of international trade that reduce exports and increase the dependence on imports
B) Low incomes that inhibit saving and the accumulation of real and human capital, making it difficult to increase productivity and income
C) A large government sector which reduces the availability of private investment spending but which increases macroeconomic stability
D) A lack of entrepreneurial talent that limits the formation of businesses and the development of private businesses