In the Vicious Circle of Poverty, what indicates the supply-side link?
- AProductivity and income
- BIncome and population
- CInvestment and technology
- DSavings and capital
Solution & Step-by-step Explanation
According to Ragnar Nurkse's Vicious Circle of Poverty theory, the supply-side circular constellation runs as follows: Low Income Low Savings Low Investment Capital Deficiency Low Productivity Low Income. Hence, the critical path features the savings-capital relationship.