Which of the following policies does NOT affect the long-term growth rate of a nation?
A)investment tax credits or any other policy that reduces the cost of capital
B)an expansionary fiscal/expansionary monetary policy mix
C)increased funding for primary education
D)incentives to increase saving
E)more funding for research and development

Question

Quizplus · Accepted Answer

An expansionary fiscal/expansionary monetary policy mix only affects short-term economic growth or stability, but does not have a significant impact on long-term growth. The other options, such as investment tax credits, funding for education, incentives for saving, and funding for research and development, can all contribute to long-term growth by increasing productivity, innovation, and human capital.

Which of the Following Policies Does NOT Affect the Long-Term