Increased government spending for investments such as highways or harbors ﬁnanced by increasing the public debt would most likely

Question

Quizplus · Accepted Answer

Increased government spending for investments such as highways or harbors is likely to complement private investment, as it can lead to a boost in productivity and economic growth. However, if the government financing is done by increasing public debt, it may lead to a crowding out effect of private investment in the future. Therefore, the best choice is C.

Increased Government Spending for Investments Such as Highways or Harbors