Question 5

5. Economic growth and public policy Suppose a wealthy French citizen buys $2 million worth of stock issued by an American corporation. The American firm uses the proceeds for a factory expansion. This is an example of foreign investment in the United States. Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply. O Pursuing inward-oriented policies Imposing restrictions on foreign ownership of domestic capital Protecting property rights and enforcing contracts Increasing taxes on income from savings What is a significant factor in long-run economic growth that Robert Fogel, an economic historian, is best known for suggesting? Inward-oriented policies that protect domestic firms from foreign competition Improvements in technology from the incentives created by a better patent system Improvements in the protection of property and enforcement of contracts through the maturation of the civil and criminal justice systems O Improvements in worker health from better nutrition Grade It Now Save & Continue