An important link between politics and economics is that
A) democracies are more productive than non-democracies.
B) democracies must constantly make difficult budgetary choices.
C) political instability is incompatible with long-term private investment.
D) conservative governments tend to focus development on military industries.

Question

Quizplus · Accepted Answer

Political instability creates uncertainty and risk for private investors, which can hinder long-term investment and economic growth. Stable political systems provide a more predictable environment and encourage private investment. Therefore, political stability is a crucial link between politics and economics. The other options are not necessarily true or relevant to the relationship between politics and economics.

An Important Link Between Politics and Economics Is That