Question

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

• A. low
• B. high
• C. moderate
• D. controlled by government policies

Answer 1

Answer: (A)

low

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

Factors which affect the people's ability to save are:

a) low levels of income

b) wide-spread poverty

c) higher propensity to consume Underdeveloped countries can be referred to those countries which are backward economically.