Which of the following will tend to retard the growth and prosperity of a country?
A) Imposition of price controls and regulations that restrain domestic and international trade.
B) An expansionary monetary policy that leads to high rates of inflation.
C) High marginal tax rates.
D) All of the above.

Question

Quizplus · Accepted Answer

A) Imposition of price controls and regulations that restrain domestic and international trade.
B) An expansionary monetary policy that leads to high rates of inflation.
C) High marginal tax rates.
D) All of the above.

B) An expansionary monetary policy that leads to high rates of inflation can reduce the purchasing power of citizens and businesses, result in price instability, and reduce investment which can ultimately hinder economic growth and prosperity.

C) High marginal tax rates reduce incentives to work, save and invest, which can discourage businesses and entrepreneurs from investing in new projects and expanding existing operations. This can ultimately lead to reduced economic growth and prosperity.

Therefore, all of the above choices (A, B, and C) will tend to retard the growth and prosperity of a country.

Which of the Following Will Tend to Retard the Growth