(Problem 7) Which of the following U.S. policies and institutions may negatively

Question

(Problem 7) Which of the following U.S. policies and institutions may negatively influence U.S. long-run economic growth? O The government has directly supported economic growth through its support of public education as well as research and development O The country has been politically stable, and its laws and institutions protect private property. O The economy has attracted significant savings, both domestic and foreign, that have allowed investment spending to spur the growth of the capital stock and fund research and development O The government's persistently large borrowing may make financing additional improvements in infrastructure and education (a phenomenon known as "crowding out") difficult, consequently slowing economic growth

Explanation / Answer

The correct answer is D. Consistently borrowing more and more puts the nation in debt and hampers long run economic growth. The correct answer is thus D.

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