Which of the following would be most likely to encourage capital formation in a less-developed country?
A. the expectation of sustained high inflation
B. the expectation that property rights will be highly secure in the years ahead
C. the imposition of high tariffs and other restraints limiting imports
D. higher personal and corporate tax rates
Answer: B
You might also like to view...
Which of the following economists first coined the concept of creative destruction?
A) Adam Smith B) Malthus C) Joseph Schumpeter D) Paul Krugman
In the real world, demand is not likely to be perfectly inelastic at every price because
a. no substitutes exist for some goods b. some consumers will be unable to afford very high prices with given incomes c. at low prices, consumers always want a lot d. consumers are willing to pay any price for certain goods e. the prices of certain goods don't change