An increase in public works spending is likely to
A)Increase physical capital investment.
B)Decrease physical capital investment.
C)Have no effect on physical capital investment.
D)Increase or decrease physical capital investment,depending on magnitude.

Question

Quizplus · Accepted Answer

Increased public works spending typically involves investment in infrastructure such as roads, airports, and public buildings. This results in an increase in physical capital investment.

An Increase in Public Works Spending Is Likely to