Final answer:
The assertion that the Safavid Dynasty used religious tolerance to enhance trade and economic growth is false. While there was some tolerance towards non-Muslims, particularly under Shah Abbas, the Safavids are known for enforcing Shi'ism on their population, with economic growth stemming from other reforms.
Step-by-step explanation:
The statement regarding the Safavid Dynasty's use of religious tolerance to promote trade and economic growth is false. The Safavid rulers, particularly Shah Ismail, enforced the conversion of their population to Shi'ite Islam using coercion and force, which hardly reflects a policy of religious tolerance.
While there was a degree of tolerance towards certain non-Muslim groups such as Christians in the later period of the Safavid Empire under Shah Abbas, the overall policy was that of rigorous imposition of Shi'ism on Muslims, especially Sunnis within the empire. It was through Shah Abbas's reforms in administration, infrastructure, and the military that the Safavid Empire saw economic growth and flourished, not primarily through religious tolerance.
During Shah Abbas's reign, there were indeed interactions with European traders and diplomatic negotiations, which aided trade and prosperity. However, this should not be conflated with broad religious tolerance as the primary method for promoting economic growth. Instead, these interactions were part of a broader strategy to strengthen the Safavid state against rival powers and to enhance its economic capabilities.