Many East Asian countries are growing very quickly because ?
Correct answer: A. They save and invest an unusually high percentage of their GDP
- A. They save and invest an unusually high percentage of their GDP
- B. They have always been wealthy and will continue to be wealthy, which is known as the "snowball effect"
- C. They are imperialists and have collected wealth from previous victories in war
- D. They have enormous natural resources.
Explanation
Many East Asian economies achieved rapid growth by maintaining high saving and investment rates, which expanded their capital stock and productive capacity. Their growth is not primarily explained by unusually large natural-resource endowments.
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