1 So slowly is sense Briefly explain me economists suspect t

1, So slowly is sense? Briefly explain. me economists suspect that one of the reasons that economies in developing countries grow that they do not have well-developed financial markets. Does this argument make 2. The U.S. economy borrowed heavily from the British in the nineteenth century to build a ailroad system. What was the principal debt instrument? Why did this make both countries better off? 3. How can the adverse selection problem explain why you are more likely to make a loan to a family member than to a stranger? 4. \"Because corporations do not actually raise any funds in secondary markets, they are less important to the economy than primary markets.\" True or False? Why? 5. What are the 2 main reasons for financial regulation? 6 Real GDP is a measure of GDP that has been adjusted for

Solution

The argument do make sense because the countries without well-developed financial markets are credit constrained and if the credit is available that too at soaring interest rates thus hindering production process and the growth process by lowering the level of investment.