The destruction of capital
A)may increase employment enough that output increases.
B)has no effect on the economy at all.
C)makes real interest rates go down.
D)benefits an economy, as higher investment must make output go up.
E)necessarily makes output go down.

Question

Quizplus · Accepted Answer

The destruction of capital can lead to increased employment if the rebuilding process requires more labor, potentially increasing output temporarily.

The Destruction of Capital