1345EconomicsMedium
The Vicious circle theory indicates that?
Aas countries grow richer they save less
Bpoverty perpetuates itself in mutually reinforcing circles on supply and demand sides
Cmarket size is large in LDCs
Da country is poor because it has lower productivity but high savings
Correct answer
B. poverty perpetuates itself in mutually reinforcing circles on supply and demand sides
Explanation
The correct answer is poverty perpetuates itself in mutually reinforcing circles on supply and demand sides.