Saving is a larger percentage of domestic output in DVCs than in IACs, but the saving is put to poor use.

Question

Kiraa Bullock · Accepted Answer

Final Answer : False, Explanation :  In general, Domestic Savings as a percentage of GDP can be lower in Developing and Emerging Economies (DVCs) compared to Industrialized Advanced Countries (IACs), due to lower income levels and higher consumption needs relative to their income. However, the efficiency of how savings are utilized can vary widely among countries, regardless of their development status, and is not inherently poorer in DVCs.

Saving is a larger percentage of domestic output in DVCs than in IACs, but the saving is put to poor use.

Definitions

Learning Objectives

Learning Objectives

Related questions