How might financial deepening contribute to poverty reduction?
What will be an ideal response?
Though the poor are rarely primary beneficiaries of financial deepening, they do benefit from improved performance of the macroeconomy. Moreover, because financial deepening benefits new firms, especially, and all firms that rely on external funding, it strengthens economic and political elements with a strong interest in sustaining the financial development. Poverty reduction will proceed, so long as financial development contributes to economic growth, and economic growth creates expanding opportunities for people to rise out of poverty.
You might also like to view...
"Government failure" is a prominent topic in:
A. public choice theory. B. Keynesian economics. C. socialist theory. D. behavioral economics.
The point of diminishing returns means that output will decrease at an increasing rate.
Answer the following statement true (T) or false (F)
Human capital refers to
A) the money people have. B) the machines that workers have to work with. C) the accumulated skills and training that workers have. D) the wealth people have.
Which of the following is true?
A. Employment and unemployment are both coincident with the business cycle. B. Employment is procyclical and unemployment is coincident with the business cycle. C. Employment is procyclical and unemployment is countercyclical. D. Employment and unemployment are both procyclical.