Why is the fear of expropriation an obstacle to economic growth?
A) Without research and development, no technological advances can be made.
B) Large government spending causes negative externalities.
C) Powerful special interest groups have too much control.
D) Because of the lack of guarantees, no foreign investment comes to the country.
E) Because of this fear, too many resources are devoted to military spending which is a highly unproductive sector.
Correct Answer:
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