Which of the following will accelerate long-run economic growth?
A)Crowding out.
B)Tax credits for new investments.
C)Elimination of government-subsidized college loans.
D)Elimination of infrastructure development.

Question

Quizplus · Accepted Answer

Tax credits for new investments can encourage businesses to invest in new technologies, expand operations, and increase productivity, which can lead to long-run economic growth. Crowding out (A) occurs when government borrowing causes interest rates to rise, discouraging private investment and potentially reducing long-run growth. Elimination of government-subsidized college loans (C) could make higher education less accessible and reduce the supply of skilled workers, which could also harm long-run growth. Elimination of infrastructure development (D) could reduce the ability of businesses to transport goods and services, hindering their productivity, reducing competitiveness, and harming long-run growth.

Which of the Following Will Accelerate Long-Run Economic Growth