Increased government spending for investments such as highways or harbors financed by increasing the public debt would most likely:

Question

Quizplus · Accepted Answer

Increased government spending for investments can complement private investment by creating new opportunities for businesses and reducing transportation costs. This can lead to increased economic growth and job creation. It is important to note that an excessive increase in public debt could potentially lead to negative consequences such as crowding out future public investment or reducing the economy's future productive capacity, but this is not necessarily the case for all levels of public debt.

Increased Government Spending for Investments Such as Highways or Harbors