A Developing Nation Decides to Make a Law Preventing Foreigners

Multiple Choice

A developing nation decides to make a law preventing foreigners from owning businesses or land.How will this policy affect economic growth?

A) It will increase economic growth,because citizens will be able to more easily buy land and resources.
B) It will increase economic growth,because foreign investors are not interested in improving the country.
C) It will increase economic growth,because foreign investment reduces interest rates.
D) It will decrease economic growth,because limiting foreign investment will reduce interest rates.
E) It will decrease economic growth,because flow of funds across the border is essential to maximizing investment.