How might financial deepening contribute to poverty reduction?
What will be an ideal response?
Though the poor are rarely primary beneficiaries of financial deepening, they do benefit from improved performance of the macroeconomy. Moreover, because financial deepening benefits new firms, especially, and all firms that rely on external funding, it strengthens economic and political elements with a strong interest in sustaining the financial development. Poverty reduction will proceed, so long as financial development contributes to economic growth, and economic growth creates expanding opportunities for people to rise out of poverty.
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The table above represents different points along a production possibilities curve. What is the marginal cost of moving from 2 bushels to 3 bushels of beans?
A) 9 bushels of carrots per bushel of beans B) 12 bushels of carrots per bushel of beans C) 3 bushels of carrots per bushel of beans D) 21 bushels of carrots per bushel of beans
If a perfectly competitive apple farm's marginal revenue exceeds the marginal cost of the last bushel of apples sold, what should the farm do to maximize its profit?
A) determine what the total revenue and total cost of production are B) increase output C) decrease output D) lower its price to sell more