Standards of living in the long run have been improved by:
A) investment in physical and human capital.
B) printing more money.
C) higher inflation.
D) lower nominal interest rates.
E) population growth.

Question

Quizplus · Accepted Answer

Investment in physical and human capital, such as education and technology, leads to increases in productivity and innovation, which ultimately improve standards of living in the long run. Printing more money and higher inflation can lead to economic instability and decreases in purchasing power, while lower nominal interest rates and population growth alone do not necessarily contribute to long-term improvements in standards of living.

Standards of Living in the Long Run Have Been Improved