An Economy Is Not Able to Develop Because of a Lack

question 131

Multiple Choice

An economy is not able to develop because of a lack of capital. Which of the following strategies would you suggest this economy pursue?

• A) lower interest rates
• B) impose quotas on how much capital can be imported from other countries to reduce dependency on foreign capital
• C) increase the political stability of the economy
• D) nationalize private enterprises because the government sector is not motivated by profit maximization

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Definitions:

Percentage Of Risk

The proportion of uncertainty or the chance of occurrence of potential adverse events expressed as a percentage.

Undesirable Outcome

An unfavorable result or effect that occurs from an action, process, or situation.

Probability

A measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.

Occurrence

Occurrence refers to the act or fact of happening or existing in a particular time or place.