Question

In an under-developed economy, the people's ability to save is low, due to __________.

• A. low levels of income
• B. wide-spread poverty
• C. higher propensity to consume
• D. all of the above

Answer 1

The correct option is D all of the above

In an under-developed economy, the people's ability to save is low, due to :

a) low levels of income

b) wide-spread poverty

c) higher propensity to consume Therefore because of the following reasons, in an under-developed economy, the people's ability to save is low. Underdeveloped countries can be referred to those countries which are backward economically.