What will happen if an economy transforms from being extractive to being inclusive?
A) The return-to-entrepreneurship schedule will shift leftward and the opportunity cost to entrepreneurship will increase.
B) The return-to-entrepreneurship schedule will shift leftward and the opportunity cost to entrepreneurship will decrease.
C) The return-to-entrepreneurship schedule will shift rightward and the opportunity cost to entrepreneurship will increase.
D) The return-to-entrepreneurship schedule will shift rightward and the opportunity cost to entrepreneurship will decrease.
Question 2
Financial intermediation is best defined as the process by which
A) corporations issue new stock.
B) liabilities are liquidated.
C) financial institutions accept savings from savers and make loans to investors.
D) inflation is controlled.
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