Political instability is an impediment to development mainly because it:
A)undermines both domestic and foreign investment in a developing country.
B)produces excessive levels of domestic saving.
C)redistributes income.
D)creates cultural and social differences among groups in developing countries.

Question

Quizplus · Accepted Answer

Political instability tends to deter both domestic and foreign investors due to the uncertainty and potential for conflict, which can disrupt business operations and reduce the potential for economic growth.

Political Instability Is an Impediment to Development Mainly Because It