Question

The type of legal system and the level of corruption in a country have been found to be _____. Group of answer choices significant determinants of economic growth in a country important topics for political discussion, but not economic explanations of growth important variables explaining the Golden Rule level of capital unrelated to the rate of economic growth in a country

Answer 1

Answer:

The correct answer is the first option: Significant determinants of economic growth in a country.

Explanation:

On the one hand, the corruption level in a country will obviously affect the economic growth of that country due to the fact that all the money that is being lost due to the corruption is money that could end up being used by the government for investment in the public sector or even if the corruption is in the private sector then all that money is avoiding taxes and going to a place that it should not, like a fiscal paradise.

On the other hand, the type of legal system will also affect the economic growth of a country due to the fact that depending of what type of system they have then the laws will be different and that will affect the way the private sector do business and the way the public sector manages.