Which policy mix serves best to encourage an increase in business fixed investment?

Question

Quizplus · Accepted Answer

Low government spending can reduce the crowding out effect, where government borrowing competes with corporate borrowing, potentially lowering interest rates and making it cheaper for businesses to invest. Expansionary monetary policy, which often involves lowering interest rates, further reduces the cost of borrowing, encouraging businesses to invest in fixed assets.

Which Policy Mix Serves Best to Encourage an Increase in Business