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.

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Definitions:

Recognition Memory

A component of memory that allows an individual to identify previously encountered events, objects, or people.

Empty Nest Syndrome

A feeling of loneliness or depression that parents may experience when their children grow up and leave home.

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Adults who have reached maturity but are referenced in relation to their parents, highlighting ongoing familial bonds despite adulthood.

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The emotional, physical, and social bond between two individuals in a legally and socially recognized union.