Fiscal policies that encourage investment in human capital and development and transfers of new technology may be successful in allowing the economy to expand without generating inflationary pressures.

Question

Quizplus · Accepted Answer

By investing in human capital and development and transferring new technology, the economy becomes more efficient and can produce more goods and services without necessarily increasing the price level, which means there is no inflationary pressure.

Fiscal Policies That Encourage Investment in Human Capital and Development