Which of the Following Factors Would Be Most Likely to Encourage

question 34

Multiple Choice

Which of the following factors would be most likely to encourage investment and capital formation in a less-developed nation?

• A) High and variable rates of inflation.
• B) Tariffs and quotas that restrict international trade.
• C) A legal system that provides for secure property rights and evenhanded enforcement of contracts.
• D) High marginal tax rates.