Which of the following is most important if a country is going to achieve and sustain rapid economic growth?
A) large government expenditures as a share of GDP
B) institutions and policies that are supportive of competition (open markets) and freedom of exchange.
C) free elections and political democracy
D) monetary policy makers who are willing to expand the supply of money rapidly

Question

Quizplus · Accepted Answer

Institutions and policies that support competition and freedom of exchange are crucial for achieving and sustaining rapid economic growth. This allows for efficient allocation of resources, innovation, and productivity growth. Large government expenditures as a share of GDP can lead to distortions in the economy and crowding out of private investment. Free elections and political democracy are important for social and political stability, but they do not necessarily lead to economic growth. Rapid expansion of the money supply can lead to inflation and instability in the long run.

Which of the Following Is Most Important If a Country