Property rights uncertainty will usually cause

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When property rights are uncertain, investors are less likely to invest because they are unsure about their ability to protect their property and receive future returns. Therefore, the uncertainty about property rights will usually lead to lower levels of investment spending. Lower investment spending can, in turn, lead to lower levels of economic growth and lower demand for borrowing, which could lower real interest rates. However, this effect is likely to be smaller than the negative impact of property rights uncertainty on investment spending.

Property Rights Uncertainty Will Usually Cause