According to the implications from the Exit, Voice, and Loyalty game in Chapter 6, states with unlimited governments (what we might think of as dictatorships) should exhibit variation in economic growth. When will dictatorships perform well (that is, have a growing economy) ?
A) When the Parliamentarians have a credible exit threat and the Crown is dependent.
B) When the Parliamentarians have a credible exit threat and the Crown is autonomous.
C) When the Parliamentarians do not have a credible exit threat.
Correct Answer:
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