A recommended policy for DVCs to implement that promotes economic growth is
A) establishing realistic policies for exchange rates.
B) obtaining more low-interest loans from the U.S. government.
C) encouraging more tariffs and quotas to protect DVC businesses.
D) discouraging direct foreign investment to make DVCs more self-suﬃcient.

Question

Quizplus · Accepted Answer

Establishing realistic policies for exchange rates can create a stable business environment and encourage foreign investment, which can ultimately promote economic growth. Obtaining loans and implementing protectionist measures may provide short-term benefits but can also lead to long-term negative consequences. Discouraging foreign investment can limit access to capital and expertise needed to foster economic growth.

A Recommended Policy for DVCs to Implement That Promotes Economic