How Did the Economic Policies of Poor Countries Change After

question 18

Multiple Choice

How did the economic policies of poor countries change after 1914?

• A)Poor countries changed from principally exporting primary products to encouraging industrialization.
• B)Poor countries reduced previously high levels of trade protection and encouraged imports.
• C)Poor countries began borrowing more money from international investors.
• D)Poor countries reduced the level of government involvement in their economies in order to spur innovation.
• E)The governments of poor countries began to ban foreign direct investment in their countries.

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Definitions:

Measures

Measures refer to legislative bills or proposed laws that are brought forward for debate, amendment, and voting in legislative bodies.

Monetary Policy

The process by which a government, central bank, or monetary authority manages the supply of money and interest rates to achieve macroeconomic objectives.

Economic Policy

The strategies and actions taken by a government to manage the economy and influence economic conditions including taxation, government budgets, and interest rates.

Loopholes

Provisions or omissions in laws, taxes, or contracts that allow individuals or entities to avoid or circumvent their intended effect, often leading to exploitation.