All of these options are true. Governments can use tax revenues to invest in physical capital, which means investing in infrastructure such as roads, bridges, and public transportation. This underlying infrastructure helps businesses to become more productive and encourages economic growth. Therefore, all the options are correct.

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Governments

Question 114

Multiple Choice

Governments:

A) can use tax revenues to invest in physical capital.
B) will fund underlying infrastructure to increase the productivity of business.
C) encourage economic growth by investing in physical capital.
D) All of these are true.

Correct Answer: