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CFA Level 2
Economics

Government Policies and Economic Growth

Medium Economic Growth And Development Government Policies

Economic growth can be significantly influenced by government policies. Such policies can determine the level of investment, sustainability of growth, and efficiency of resource allocation in an economy. One common way governments encourage economic growth is through specific incentives or interventions. However, not all government policies effectively enhance growth.

Consider the following options related to government policies aimed at stimulating economic growth. Which of the following government interventions is most likely to promote sustainable long-term economic growth?

Hint

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