Which of the following actions does not promote capital deepening?
(A) Raising taxes to pay for building roads.
(B) A low population growth rate at the same time that capital stock expands.
(C) Borrowing money from foreign nations to invest in building infrastructure in this country.
(D) Saving less and spending more of one's disposable income.
Ans: (D) Saving less and spending more of one's disposable income.
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For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result
A) the equilibrium price of B will fall and the equilibrium price of A will rise. B) the equilibrium price of B will rise and the equilibrium price of A will fall. C) the equilibrium prices of both A and B will rise. D) the equilibrium prices of both A and B will fall.
An example of targeted government spending is its spending on
a. education b. police protection c. national defense d. space exploration e. welfare