Policies promoting asset creation and growth may improve well-being of the poor through
A) the policies give the poor new assets directly or they encourage the poor to undertake their own investments.
B) the policies drive up wages for low-skill workers or drive down the prices of goods consumed by the poor.
C) the policies can generate more assets for non-poor and their assets can be transferred to the poor through public or private safety nets.
D) All of the above.

Question

Quizplus · Accepted Answer

Policies promoting asset creation and growth can have multiple effects on the well-being of the poor. Directly providing the poor with new assets or encouraging them to invest can increase their economic security and independence. Driving up wages or driving down prices can also benefit the poor's financial situation. Additionally, generating more assets for non-poor individuals can create opportunities for those assets to be transferred to the poor through public or private safety nets. All three mechanisms can work together to improve the well-being of the poor, making option D the correct answer.

Policies Promoting Asset Creation and Growth May Improve Well-Being of the Poor