Technological progress often results in:
A) a fall in investment as firms can produce more output for fewer inputs, including capital.
B) a rise in investment as firms try to take advantage of these improvements.
C) no change in investment, as a rise in some investment is offset by decreases in other areas of investment.
D) a rise in investment only if it is accompanied by a fall in the interest rate.

Question

Quizplus · Accepted Answer

Technological progress often leads to increased efficiency and productivity, which can lead to increased profits for firms. As a result, firms may choose to invest more in order to take advantage of these improvements and expand their business.

Technological Progress Often Results In