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Author Question: How have government inefficiencies contributed to the creation of dead capital in the world's ... (Read 28 times)

burchfield96

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on: Jun 30, 2018
How have government inefficiencies contributed to the creation of dead capital in the world's developing nations?
 
  What will be an ideal response?

Question 2

How does the Fed increase the level of reserves in the banking system?
 
  A) by lowering interest rates B) by buying bonds
  C) by raising interest rates D) by selling bonds


Pariscourtney

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Governments in developing nations place obstacles in the way of entrepreneurs interested in owning capital goods and directing them to profitable opportunities. Poorly administered government regulations reduce investment in new capital goods. Because of the poor administration investors are unwilling to risk having their investment turn into dead capital.

Answer to Question 2

B


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