Based on macro-economic theory, when property rights enforcement is predictable and stable, "individuals have a greater incentive to undertake investments in their property."
This is because investors generally want to know the viability of a new investment before starting such an investment or a new business.
Generally, it is believed that where there is no predictable enforcement and the rule of law, there would be uncertainty and risk, which would affect the market interactions and economic development.
Hence, in this case, it is concluded that the correct answer is option B. "individuals have a greater incentive to undertake investments in their property."
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