When a business increases investment, what is the effect on the economy?
A) There is no effect on the economy.
B) Prices on goods and services increase.
C) The amount of physical capital increases.
D) The firm's financial capital increases.

Question

Quizplus · Accepted Answer

Increasing investment typically leads to an increase in physical capital, which can enhance productivity and economic growth.

When a Business Increases Investment, What Is the Effect on the Economy