Which of the following can reduce the level of economic growth?

Question

Quizplus · Accepted Answer

Crowding out occurs when government borrowing reduces the availability of credit for private sector investments, resulting in a decrease in economic growth.

Answer: C 
 Higher ratios of capital to labor can lead to diminishing marginal returns and saturation of capital, resulting in a slowdown in economic growth.

Answer: D 
 Crowding in occurs when government spending on public goods and services stimulates private sector investment, resulting in an increase in economic growth. Therefore, it does not reduce economic growth.

Answer: B 
 Technological improvements typically lead to an increase in productivity and efficiency, resulting in an increase in economic growth. Therefore, it does not reduce economic growth.

Which of the Following Can Reduce the Level of Economic