What is a valid policy to use for increasing the rate of economic growth?
A) reduce reliance on market forces because they allocate goods and services in an unfair manner
B) encourage trade with neighbouring countries
C) increase the fraction of GDP devoted to consumption
D) restrict investment in domestic industries by foreigners because they take some of the profits out of the country

Question

Quizplus · Accepted Answer

Encouraging trade with neighbouring countries can lead to an increase in exports and imports, which can increase economic growth by increasing the flow of goods and services in and out of the country. This can also lead to increased international competitiveness and specialization in certain industries, which can further boost growth. The other answer choices are not valid policies for increasing economic growth.

What Is a Valid Policy to Use for Increasing the Rate