Balance of Payments, Aid and Foreign Investment
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- Balance of Payments, Aid and Foreign Investmenteconomics-mcqs › balance-of-payments-aid-and-foreign-investment
- Published
- 2 Jun 2019
- Last updated
- 28 May 2026
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Explanation
The four identified constraints are: I - skill limitation, II - savings shortfall, III - fiscal deficit, and IV - foreign exchange shortage. Growth peaks when limited by these factors. The correct stages where growth is constrained by the most limiting factors are II (the savings gap) and IV (the foreign exchange gap).
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Practice related questions from the same subject.
- 1.Which of the following statements accurately describes the United States' total official development assistance (ODA) to developing nations?
- 2.According to Harvard's Dani Rodrik, what does globalization primarily entail?
- 3.Between the 1960s and 1980s, why did the United States experience a decline in both real food aid and food reserves?
- 4.How do Carmen Reinhart and Kenneth Rogoff account for the paradox of capital flowing from poorer to wealthier nations?
- 5.Some economists and policymakers in developing nations argue that multinational corporations (MNCs) negatively impact these countries because they:
- 6.In what ways can multinational corporations (MNCs) contribute to the development of a developing nation?
- 7.What does bilateral aid refer to?
- 8.Which combination correctly describes the balance on the current account?
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