Which of the following would encourage economic growth through increases in the capital stock?

Question

Quizplus · Accepted Answer

All three choices can encourage economic growth through increases in the capital stock. 
- Choice A: By changing from an income tax to a consumption tax, people have more incentive to save, which can increase investment and lead to an increase in the capital stock.
- Choice B: Increasing household saving means people are saving more money, which can be used for investment and thus increase the capital stock.
- Choice C: Decreasing the government deficit can lead to less government borrowing, which can lead to lower interest rates and more money available for investment and thus increase the capital stock.

Which of the Following Would Encourage Economic Growth Through Increases