Developing infrastructure and ensuring that property rights will be protected can help a poor country grow more quickly according to de Soto's book The Other Path.
Answer the following statement true (T) or false (F)
True
De Soto concluded that countries could grow more quickly if governments encouraged rather than suppressed entrepreneurial resources. In his best-selling book, The Other Path, he urged poor countries to refocus their development policies. This 'other path' entails improving the business climate by reducing bureaucratic barriers to free enterprise, spreading private ownership, developing and enforcing legal safeguards for property, income, and wealth, and developing infrastructure that facilitates business activity.
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Consider an economy where the growth rate of real GDP is 6% and the annual rate of inflation is 2%. If the quantity theory of money holds, the growth rate of money supply in the economy will be:
A) 6%. B) 2%. C) 8%. D) 4%.
The idea that a $1 increase in infrastructure spending will generate more than $1 in economic growth is a representation of
A) the multiplier effect. B) an automatic stabilizer. C) an outside lag. D) an inside lag.