When analyzing the determinants of long-term economic growth and development, economists distinguish between institutional factors and macroeconomic policies. Which of the following is classified as an institutional factor rather than a macroeconomic policy or variable?
A sustained reduction in the central bank's benchmark interest rate to lower the cost of borrowing
An increase in public sector capital expenditure on national transport infrastructure
The legal and regulatory framework protecting intellectual property and preventing arbitrary state expropriation
A depreciation of the nominal exchange rate to improve the balance of trade
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.