Why Do Political Instability and Insecure Property Rights Retard Economic

Multiple Choice

Why do political instability and insecure property rights retard economic growth?

A) Fear that private property will be confiscated substantially reduces the incentive to invest and create wealth.
B) When property rights are insecure, foreign investors will be reluctant to invest in the country.
C) Savings will tend to flow out of a country if individuals fear their property is insecure.
D) All of the above are correct.