AP Macroeconomics Question 436: Answer and Explanation

Test Information

Use your browser's back button to return to your test results.

Question: 436

11. Which of the following is most likely to produce stronger economic growth over time?

  • A. More rapid consumption of natural resources.
  • B. Higher adult illiteracy rates.
  • C. A falling stock of capital goods.
  • D. Investment tax credits.
  • E. Higher taxes on foreign capital investment.

Correct Answer: D

Explanation:

D-Investment tax credits provide incentives for firms to invest in capital equipment and new factory construction. This policy stimulates economic growth and productivity.