Political creative destruction:
A) is likely to hamper the ruling government in an economy with inclusive institutions.
B) leads to losses of all economic agents.
C) leads to the benefit of all economic agents.
D) is likely to adversely affect the ruling government in an economy with extractive institutions.
D
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Which of the following will reduce the velocity of circulation of the money stock?
a. The inflation rate increases. b. The interest rate falls. c. Credit cards are used more frequently. d. More employees are paid once a week instead of once a month.
Suppose the central bank increases the growth rate of the money supply. In the long run, which of the following is unaffected by this change in policy?
a. the unemployment rate and the inflation rate b. the unemployment rate but not the inflation rate c. the inflation rate but not the unemployment rate d. neither the inflation rate nor the unemployment rate