an economy is not able to develop because of a lack of capital. which of the following strategies would you suggest this economy pursue? a. lower interest rates b. impose quotas on how much capital can be imported from other countries to reduce dependency on foreign capital c. increase the political stability of the economy d. nationalize private enterprises because the government sector is not motivated by profit maximization

Respuesta :

When an economy is unable to develop because of a lack of capital, a strategy it can pursue is c. increase the political stability of the economy

How can a nation get more capital ?

For an economy to be able to get more capital to flow into it, there are several strategies that can be used. One of them is to increase interest rates as this would entice investors to invest in the economy to be able to get returns from those interest rates.

Another way would be to increase the political stability of the country as this would also entice investors to bring capital. Investors don't like putting their money in places that are not politically stable.

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Answer: c. increase the political stability of the economy

Explanation: