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Financial development can lead to economic growth as it encourages efficiency in the allocation of financial resources. a) Explain in detail how financial development influences

Financial development can lead to economic growth as it encourages efficiency in the allocation of financial resources.

  1. a) Explain in detail how financial development influences the economic growth of a country.

  2. b) In your opinion, would supply-side economic policy play an important role in shaping the financial development of an economy? Explain your answer briefly.

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