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How Do Insecure Property Rights Break the Links Between Savings

Question 90

Multiple Choice

How do insecure property rights break the links between savings and economic growth?


A) If people think they may lose the money they save in banks, they will not save as much, leading to decreased investment and thus decreased economic growth.
B) If governments tend to nationalize companies, then people will not buy stock in those companies, leading to decreased investment and decreased economic growth.
C) If governments tend to nationalize companies, then investors will hesitate to invest, leading to lower physical capital stocks and decreased economic growth.
D) Each of these answers is correct.

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