Insecure property rights typically lead to:
A) an increase in the supply of savings.
B) a decrease in the supply of savings.
C) an increase in the demand to borrow.
D) a decrease in the demand to borrow.

Question

Quizplus · Accepted Answer

Insecure property rights discourage people from saving because they may not be able to reap the benefits of their savings if their property is taken away from them. Therefore, insecure property rights lead to a decrease in the supply of savings.

Insecure Property Rights Typically Lead To