Question

The president of a poor country has announced that he will implement the following measures that he claims are designed to increase growth: 1. Reduce corruption in the legal system; 2. Reduce reliance on market forces because they allocate goods and services in an unfair manner; 3. Restrict investment in domestic industries by foreigners because they take some of the profits out of the country; 4. Encourage trade with neighboring countries; and 5. Increase the fraction of GDP devoted to consumption. How many of these measures will have a positive effect on growth?A) 1
B) 2
C) 3
D) 4
E) 5

Answer 1

Answer:

C : 3

Explanation:

Specifically, the following measures will have a positive effect on growth:

1: Reducing corruption in the legal system.

2: Encouraging trade with neighbouring countries, and

3: Increasing the fraction of GDP devoted to consumption.