Which of the following has resulted in economic instability of developing countries?
A) a fall in the prices of natural resources of developing countries
B) a rise in the prices of natural resources of developing countries
C) a rise in the labor productivity of developing countries
D) a rise in the rate of saving of developing countries

Question

Quizplus · Accepted Answer

A fall in the prices of natural resources of developing countries can lead to economic instability as these countries heavily rely on their exports of these resources. A drop in prices means a decrease in revenue, which can lead to budget deficits, inflation, and uncertainty in the economy. The other options (B, C, and D) are unlikely to cause economic instability in developing countries.

Which of the Following Has Resulted in Economic Instability of Developing