Author Question: Investment in both physical and human capital enhances economic growth because it: a. increases ... (Read 94 times)

Anajune7 · **on:** Jun 30, 2018

Investment in both physical and human capital enhances economic growth because it:
a. increases consumption during the current period.
b. makes it possible for individuals to produce more goods and services per hour worked.
c. encourages firms to expand output by employing more low-productivity workers.
d. encourages workers to unionize and, thereby, fight for higher wages.

Question 2

The greater the marginal propensity to consume in the economy, the smaller the spending multiplier.
a. True
b. False
Indicate whether the statement is true or false