In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A)increase growth because they stop exploitation by foreigners.
B)increase growth because they keep people producing for the local market.
C)decrease growth because they slow the growth of capital.
D)decrease growth because they cause inflation.

Question

Quizplus · Accepted Answer

Policies that impose tariffs, investment caps, and extensive bureaucratic procedures can deter foreign investment, leading to a slower growth of capital. This can retard economic growth as it limits the influx of foreign capital, technology, and expertise that can stimulate domestic industries and infrastructure development.

In the Early 2000s, Some Argued That the Indian Government