Macroeconomics: Principles, Problems, & Policies 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0-07766-077-3
ISBN 13: 978-0-07766-077-2

Chapter 5 - Government's Role and Government Failure - Discussion Questions - Page 124: 1

Answer

In order to get good investments, it is necessary that people trust the government's stability, for if people do not trust that the government is stable, they will not invest in government-run entities like the stock market.

Work Step by Step

In order to get good investments, it is necessary that people trust the government's stability, for if people do not trust that the government is stable, they will not invest in government-run entities like the stock market.
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