In the Early 2000s, Some Argued That the Indian Government

Multiple Choice

In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:

A) increase growth because they stop exploitation by foreigners.
B) increase growth because they keep people producing for the local market.
C) decrease growth because they slow the growth of capital.
D) decrease growth because they cause inflation.