One way a stable financial system supports economic growth is that it

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A stable financial system facilitates the movement of capital from those who have savings to those who need it for investment, allowing businesses to expand and create jobs. This can lead to economic growth as more goods and services are produced and sold in the economy. The other options, subsidizing borrowers or keeping tax rates low, may also have some impact on economic growth but are not directly related to the role of a stable financial system in supporting it. The fourth option, increasing the incidence of unanticipated price changes, would actually be detrimental to economic growth as it would create uncertainty and make it harder for businesses to plan and invest.

One Way a Stable Financial System Supports Economic Growth Is