Consider the policy proposals below. Decide whether each proposal is consistent with a Solow growth model, the New Growth Theory, neither, or both. 

a. International aid provided to help build a new power plant.

b. Aid for a power plant that is contingent upon democratic reforms.

c. A reduction in tariffs or quotas to encourage more international trade.

d. Increased availability of micro finance loans (very small, short term loans for small businesses).

e. New policies to strengthen private property rights.

f. Loans from international organizations like the World Bank to governments to help build new factories.

g. Lowering tax rates.

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ANSWER IS Lets analyze each proposal in the context of the Solow growth model and the New Growth Theory a International aid provided to help build a new power plant Solow Growth Model Consistent Inves... View the full answer