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A correlation between variables, however, does not automatically mean that the change in one variable is the cause of the change in the values of the other variable. Causation indicates that one event is the result of the occurrence of the other event; i.e. there is a causal relationship between the two events.
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While the rest of the world's economy grew at an annual rate of close to 2 percent from 1960 to 2002, growth performance in Africa has been dismal. From 1974 through the mid-1990s, growth was negative, reaching negative 1.5 percent in 1990-4. As a consequence, hundreds of millions of African citizens have become poor: one half of the African continent lives below the poverty line. In sub-Saharan Africa, per capita GDP is now less than it was in 1974, having declined over 11 percent. In 1970, one in ten poor citizens in the world lived in Africa; by 2000, the number was closer to one in two. That trend translates into 360 million poor Africans in 2000, compared to 140 million in 1975.
In The Economic Tragedy of the XXth Century: Growth in Africa (NBER Working Paper No. 9865), authors Elsa Artadi and Xavier Sala-i-Martin review both the deteriorating economic status of the African continent and the ways in which rich nations, as well as the African nations themselves, might help the poor nations of the continent.
Using the robust econometric determinants of economic growth in a cross-section of countries, the authors pinpoint the most important factors behind the tragedy. The first culprit has been the lack of investment. Over the past 40 years the investment rate in Africa has fallen. Since 1975 the investment rate has declined to 8.5 percent for the whole continent, compared to investment rates for the average-performing OECD economy of between 20 and 25 percent, and for East-Asian economies of 30 percent. Furthermore, most of the investment was skewed in the direction of the inefficient public sector. Recent reforms in Africa have raised the investment rate, but only slightly.Explanation:
Answer: GERMANY
<u>Explanation</u>:
The Zimmerman telegram was a note sent by Germany's foreign minister to the ambassador of Mexico, seeking alliance with Mexico against the United States if the US entered the war. Learning of the telegram increased concerns by the US about Germany's intentions, and led to declaration of war.
Further detail:
The reasons that led to the US declaring war against Germany in 1917:
- In January, 1917, Germany had resumed its policy of unrestricted submarine warfare. Germany had halted its attacks on non-military vessels (which it suspected of carrying military supplies) after the furor over the sinking of the Lusitania in 1915. But now Germany was resuming attacks by its U-boats.
- In February, 1917, the "Zimmerman Telegram" was intercepted by British intelligence and shared with the US. Germany's foreign minister, Arthur Zimmerman, had telegraphed an offer to Mexico's ambassador seeking Mexico's support in war vs. the United States in exchange for getting land back from the US.
- On April 2, 1917, President Woodrow Wilson made a powerful speech to Congress in which he argued that the nation needed to enter the war "to make the world safe for democracy." Wilson's speech was powerfully convincing, and four days later, Congress declared war.
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