How Do Insecure Property Rights Break the Links Between Savings

question 41

Multiple Choice

How do insecure property rights break the links between savings and economic growth?

• A) If people think they may lose the money they save in banks, they will not save as much, leading to decreased investment and thus decreased economic growth.
• B) If governments tend to nationalize companies, then people will not buy stock in those companies, leading to decreased investment and decreased economic growth.
• C) If governments tend to nationalize companies, then investors will hesitate to invest, leading to lower physical capital stocks and decreased economic growth.
• D) Each of these answers is correct.

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Definitions:

Manual Motor Starters

Manual motor starters are devices used to manually turn on or off electric motors, providing protection by allowing the controlled starting and stopping, as well as overload protection.

Stator Unit

The stationary part of an electric machine, such as a motor or generator, which works in conjunction with the rotor to induce motion or generate electricity.

Energizes

The act of supplying electrical power to a circuit or component, causing it to operate.

Motor Load

A measurement referring to the mechanical output power demanded from an electric motor, reflecting the resistance or work the motor must overcome.