QQuestionAmerican College Testing
QuestionAmerican College Testing
Choose the investments that would BEST foster economic growth.
A) Investment in capital
B) Investment in technology
C) Investment in commodities
D) Investment in savings accounts
E) Investment in digital currency
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Answer
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Step 1Let me solve this problem by analyzing each investment option's potential for economic growth.
Step 2: Evaluate Investment in Capital
- Capital investment involves purchasing physical assets like machinery, equipment, and infrastructure - Directly increases productive capacity of an economy - Enables businesses to improve efficiency and output - Provides long-term economic infrastructure - Moderate potential for economic growth
Final Answer
Rationale: Technology investment offers the most significant potential for fostering economic growth by driving innovation, increasing productivity, creating new industries, and providing sustainable competitive advantages across multiple economic sectors.
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