Which of the following will be required for a low-income country to move up the income ladder and achieve high-income status?
A)rapid growth of the money supply to increase inflation and prices
B)restrictions limiting the import of goods from other nations
C)high tax rates to support a large government sector
D)a high rate of sustained economic growth

Question

Quizplus · Accepted Answer

In order for a low-income country to achieve high-income status, it must have sustained economic growth. This will enable the country to increase its productivity, create jobs, and generate higher levels of income. Rapid growth of the money supply to increase inflation and prices is not a sustainable approach and can lead to economic instability. Restrictions limiting the import of goods from other nations can limit competition, innovation, and reduce access to essential resources. High tax rates to support a large government sector can discourage investment and entrepreneurship, leading to a stagnant economy.

Which of the Following Will Be Required for a Low-Income