Explain How Each of the Following Could Discourage Economic Growth

question 77

Essay

Explain how each of the following could discourage economic growth:
a.The government closes all of the schools so that more people will be available for work.
b.The country fears military invasion and spends half of its income on military goods.​

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Definitions:

Required Return

The expected yield that an investor demands for committing capital to an investment.

Required Return

The minimum return that investors expect from an investment considering the risk involved.

Grow at

Refers to the rate at which a company or an economic variable increases over a specified period.

Rate of Return

The net gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.