A recommended policy for developing countries to stimulate economic growth would be
A) abolishing central banks.
B) more central planning by government.
C) encouraging more direct foreign investment.
D) expanding employment in state industries.

Question

Quizplus · Accepted Answer

Encouraging direct foreign investment can bring in new capital, technology, and expertise to developing countries, creating new jobs and stimulating economic growth. It can also help to diversify the economy and increase exports, which can help to stabilize the country's currency and balance of trade. Abolishing central banks or expanding state industries may limit economic growth and increase the risk of inflation, while more central planning by the government may limit innovation and entrepreneurship.

A Recommended Policy for Developing Countries to Stimulate Economic Growth