An Economy Is Not Able to Develop Because of a Lack

question 131

Multiple Choice

An economy is not able to develop because of a lack of capital. Which of the following strategies would you suggest this economy pursue?

• A) lower interest rates
• B) impose quotas on how much capital can be imported from other countries to reduce dependency on foreign capital
• C) increase the political stability of the economy
• D) nationalize private enterprises because the government sector is not motivated by profit maximization