Hu Tells Leaders China Growth Will Help World Economy Chinese President Hu Jintao told world leaders that his country "has taken an active part in the international cooperation to deal with the financial crisis'' by providing a "$586 billion economic stimulus, focused on building low-rent housing, roads, railways and airports. The package also allows tax deductions for fixed assets such as machinery to stimulate investment. Farmers will also benefit from more subsidies."
Hu stated that "China is in itself an important contribution to international financial stability and world economic growth.''
Www)bloomberg.com 11/15/2008
China wants to increase investment because this change will

Question

Quizplus · Accepted Answer

The stimulus package focused on infrastructure and investment incentives is designed to increase the growth in physical capital, which in turn can speed up economic growth by enhancing productivity and expanding the economy's capacity.