Question

How does corruption limit investment and economic growth? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Tax revenues are often diverted to those in power instead of going into legitimate productive investment, and the same is sometimes true of foreign aid money from abroad. unchecked Corruption means that the country's balance of payments account will be in deficit, which will hinder growth. unanswered Knowing that payments of graft must be made prevents many people from undertaking actions that might lead to growth. unanswered Limited investment and poor use of available funding make economic growth difficult in developing countries.

Answer 1

Answer:

Correct option are (1) and (3).

Tax revenues are often diverted to those in power instead of going into legitimate productive investment, and the same is sometimes true of foreign aid money from abroad.

Knowing that payments of graft must be made prevents many people from undertaking actions that might lead to growth.

Explanation:

In a corrupt economy, government incomes from charge and outside guide frequently are occupied to politically influential individuals as opposed to being contributed for gainful purposes. Since individuals realize that defilement cash needs to paid to concerned authorities, they don't attempt such profitable venture either. Both these variables identified with defilement limits speculation and development.