Which of the following would not enhance economic growth? Subsidies for investme
ID: 2495022 • Letter: W
Question
Which of the following would not enhance economic growth?
Subsidies for investments in physical capital
An increase in the corporate profits tax
Subsidies for investments in human capital
A tax cut that encourages saving
Subsidies for research and development expenditures
A.Subsidies for investments in physical capital
B.An increase in the corporate profits tax
C.Subsidies for investments in human capital
D.A tax cut that encourages saving
E.Subsidies for research and development expenditures
Explanation / Answer
option B is the right answer to this question.
the remaining 4 activities helps to increase in economic growth.
subsidies for investments in physical capital helps to invest more funds in physical assets and in long run it helps the nation to get more output. in the same way each alternative carries its own contribution to economic growth, but higher corporate tax on profits does not help the nation's economic growth.
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