The catch-up effect refers to the idea that
A)saving will always catch-up with investment spending.
B)it is easier for a country to grow fast and so catch-up if it starts out relatively poor.
C)population eventually catches-up with increased output.
D)if investment spending is low, increased saving will help investment to "catch-up."

Question

Quizplus · Accepted Answer

The catch-up effect suggests that poorer nations can grow more rapidly than wealthier nations, allowing them to "catch up" in terms of economic development. This is because they can adopt existing technologies and practices from wealthier countries without having to develop them from scratch.

The Catch-Up Effect Refers to the Idea That