Question

Government can help in forming new venture by
providing:
Select one:
O A. Subsidiaries
O B. Finance
O C. Infrastructure
D. Technology​

Answer 1

Answer:

finance or subsidiaries

Answer 2

The correct answer is OPTION C: Infrastructure.

• Increases in public infrastructure alone increase private capital productivity because public capital complements private capital.
• Increased private capital boosts worker productivity, resulting in higher pay and reduced interest rates (loan costs), encouraging more work and private capital investment.
• Higher GDP results from more effort and private capital.
• If additional federal borrowing is used to fund the increased public infrastructure investment, however, a countervailing effect occurs: the rising government debt drives out private capital, resulting in decreased output.