Investments in public infrastructure ________.

Question

Quizplus · Accepted Answer

Investments in public infrastructure may boost productivity and income by improving transportation systems, communication networks, and other public services that support economic activity. However, investments in public infrastructure can also suffer from diminishing returns if not properly maintained or if investments are not targeted toward areas of greatest need. Therefore, while not immune to diminishing returns, investments in public infrastructure can have significant benefits for economic growth and development. Choice B is incorrect as investments in public infrastructure can be seen as a strategic allocation of national savings if they lead to long-term economic growth. Choice C is also incorrect as investments in public infrastructure typically increase during periods of economic growth as governments have more resources to invest in infrastructure.

Investments in Public Infrastructure ________