A type of policy that would be advocated by modern growth theory would be to
A) build new power plants.
B) offer financial aid.
C) make available short-term loans to small businesses.
D) reduce trade restrictions.
E) increase tax rates to raise revenue.

Question

Quizplus · Accepted Answer

Modern growth theory emphasizes the importance of international trade and reducing trade restrictions to promote economic growth. Therefore, reducing trade restrictions would be the type of policy advocated by modern growth theory.

A Type of Policy That Would Be Advocated by Modern