Which of the Following Would Be Most Likely to Encourage

question 61

Multiple Choice

Which of the following would be most likely to encourage capital formation in a less-developed country?

• A) The expectation of sustained high inflation.
• B) The expectation that property rights will be highly secure in the years ahead.
• C) The imposition of high tariffs and other restraints limiting imports.
• D) Higher personal and corporate tax rates.

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Definitions:

Exchange

The act of trading goods, services, or currencies among parties.

Bakery

A bakery is a business establishment that produces and sells flour-based food baked in an oven such as bread, cookies, cakes, pastries, and pies.

Exchange

An exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded.