Which of the following is most likely to reduce the rate of economic growth?
A) a high domestic saving rate
B) investment in human capital
C) subsidies for R&D activities
D) slow technological progress

Question

Quizplus · Accepted Answer

Slow technological progress can lead to a decrease in productivity, which will ultimately result in a decrease in economic growth. If technology is not advancing, then it becomes harder for businesses to increase their efficiency and produce goods and services at a faster rate. This will cause a slowdown in the economy. A high domestic saving rate, investment in human capital, and subsidies for R&D activities can all contribute positively to economic growth.

Which of the Following Is Most Likely to Reduce the Rate