The correct answer is: All of the above
The show of impact is a hindrance to the development of low-income countries because it affects propensity to consume, the choice of technology, and the selection of projects.
Propensity to consume is the willingness and ability of consumers to spend money on goods and services. When people are worried about their future, they are less likely to spend money. This can lead to a decrease in demand for goods and services, which can hurt the economy.
The choice of technology is important because it can affect the productivity of a country. If a country chooses the wrong technology, it can lead to a decrease in productivity and economic growth.
The selection of projects is also important because it can affect the development of a country. If a country selects the wrong projects, it can lead to a waste of resources and a decrease in economic growth.
In conclusion, the show of impact is a hindrance to the development of low-income countries because it affects propensity to consume, the choice of technology, and the selection of projects.
Here are some additional details about each of the options:
- Propensity to consume: The propensity to consume is the willingness and ability of consumers to spend money on goods and services. It is affected by a number of factors, including income, wealth, and expectations about the future. When people are worried about their future, they are less likely to spend money. This can lead to a decrease in demand for goods and services, which can hurt the economy.
- The choice of technology: The choice of technology is important because it can affect the productivity of a country. If a country chooses the wrong technology, it can lead to a decrease in productivity and economic growth. For example, if a country chooses to use outdated technology, it will be at a disadvantage compared to countries that use newer, more efficient technology.
- The selection of projects: The selection of projects is also important because it can affect the development of a country. If a country selects the wrong projects, it can lead to a waste of resources and a decrease in economic growth. For example, if a country selects projects that are not feasible or that are not aligned with its development goals, it will not be able to achieve its development objectives.