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A Policy That Has the Potential to Boost Investment for a Given

Question 72

Multiple Choice

A policy that has the potential to boost investment for a given amount of savings would be


A) imposing heavy tariffs on imported capital goods.
B) government subsidies to fund investment in any business that desires it.
C) free-trade policies that allow businesses to freely earn and spend the foreign exchange needed to . purchase new generations of machinery and equipment.
D) requiring scarce import licenses in order to purchase foreign-made capital goods.

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