If the government uses tax money to pay for long-term investments such as roads or other infrastructure, what happens to the economy?

(A) Taxes decrease
(B) Investment decreases
(C) Investment increases
(D) Taxes increase

Ans: (C) Investment increases

Economics

You might also like to view...

In the figure above, if no one owns the lake, at the equilibrium quantity what is the marginal social cost of producing the pesticide?

A) $80 B) $40 C) $60 D) $30

Economics

Applying the concept of "clean enough" to endangered species, an economist means the

A. state of species endangerment where the marginal cost of cleaning equals the marginal benefit of cleaning. B. state where no species are ever harmed. C. state of species endangerment where the total cost of cleaning equals the total benefit of cleaning. D. state of species endangerment where the average cost of cleaning more equals the average benefit of cleaning more.

Economics