Which of these is among the principal determinants of economic growth?
A)inflation
B)the financial system
C)the central bank
D)the government budget deficit
E)stabilization policy

Question

Quizplus · Accepted Answer

The financial system, which includes things such as capital markets, banking, and insurance, plays a crucial role in economic growth by facilitating the direction of savings into productive investments. A well-functioning financial system can fuel entrepreneurship, innovation, and job creation while also improving the efficiency of resource allocation across the economy. In contrast, a poorly functioning or unstable financial system can hinder economic growth by limiting access to credit, creating barriers to entry for new businesses, and increasing uncertainty and risk for investors.

Which of These Is Among the Principal Determinants of Economic