Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?
Correct answer: D. All of the above
- A. research and development subsidies
- B. loan guarantees
- C. low interest rate loans
- D. All of the above
Explanation
Governments seeking to build domestic comparative advantage may subsidize research and development, guarantee loans, or offer loans at below-market interest rates. Therefore all three listed instruments qualify.
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