Investment in both physical and human capital enhances economic ...

[Anajune7]

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

[macybarnes]

Answer to Question 1

b

Answer to Question 2

False

[Anajune7]

YES! Correct, THANKS for helping me on my review

[bbburns21]

Thanks for the timely response, appreciate it