Answer:
d. A new government adopts tighter inflation controls.
b. Future prices of physical capital and raw goods become more predictable, as does the cost of borrowing money.
a. More investment in production facilities occurs.
c. More production takes place.
Explanation:
The process flow for implementing the right policy to resultant growth is shown above.
First the government adopts tighter inflation controls, institutionalising the policy that will bring growth.
As a result of the policy prices become more predictable.
Confidence of investors grow as they can forecast future profits. More investment in production occurs.
Finally more production takes place. Growth is achieved.
