753EconomicsMedium
The idea that suggests that poverty is self-perpetuating because poor nations are unable to save and invest enough to accumulate the capital stock that would help them grow is?
Athe dependency theory
Bneo-colonialism
Cthe under-consumptionist hypothesis
Dthe vicious circle of poverty hypothesis
Correct answer
D. the vicious circle of poverty hypothesis
Explanation
The correct answer is the vicious circle of poverty hypothesis.