Which of the following policies do you think would be most effective at boosting growth and living standards in a poor country over the long run? Offer tax incentives for investment by local firms Offer tax incentives for investment by foreign firms Give cash payments for good school attendance Crack down on government corruption Restrict imports to protect domestic industries Allow free trade There is no right or wrong answer here, so please select one policy that you believe would be most effective, and then write some reasons (based on the material in this chapter!) why this would be an effective policy.
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