Which of the following will accelerate long-run economic growth?
A)Crowding out.
B)Tax credits for new investments.
C)Elimination of government-subsidized college loans.

Question

Quizplus · Accepted Answer

Tax credits for new investments will incentivize businesses to make new investments, leading to innovation and job creation, ultimately accelerating economic growth in the long-run. Crowding out occurs when government borrowing leads to higher interest rates, causing private investment to decrease, therefore it hinders long-run economic growth. Elimination of government-subsidized college loans is unlikely to have a significant impact on long-run economic growth.

Which of the Following Will Accelerate Long-Run Economic Growth