The president of a poor country has announced that he will implement the following measures that he claims are designed to increase growth: 1 . Reduce corruption in the legal system; 2 . Reduce reliance on market forces because they allocate goods and services in an unfair manner; 3 . Restrict investment in domestic industries by foreigners because they take some of the profits out of the
country; 4 . Encourage trade with neighboring countries; and 5 . Increase the fraction of GDP devoted to consumption. How many of these measures will have a positive effect on growth?
a. 1
b. 2
c. 3
d. 4
b
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What will be an ideal response?
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