If two countries have the same share of investment to GDP, the one that experiences a faster growth rate is most likely the one that
A)emphasizes free market policies and encourages foreign trade
B)protects domestic industry from foreign competition with trade barriers
C)invests less in government infrastructure
D)has a higher share of government spending to GDP
E)has more government regulations and spends more funds to protect the environment

Question

Quizplus · Accepted Answer

Countries that emphasize free market policies and encourage foreign trade tend to have faster economic growth rates because they attract more foreign investment and have access to more markets for their goods and services. This leads to increased competition, innovation, and efficiency which can result in a faster growth rate.

If Two Countries Have the Same Share of Investment to GDP