Studies generally show that if there is more investment in capital goods in DVCs, there will be greater
A) capital ﬂight.
B) economic growth.
C) underemployment.
D) unemployment.

Question

Quizplus · Accepted Answer

Investment in capital goods will contribute to economic growth by increasing productivity and efficiency, leading to more job creation and higher incomes. Capital flight refers to the movement of capital out of a country, which is not directly related to investment in capital goods. Underemployment and unemployment may still exist even with increased investment in capital goods, as other factors such as education and labor market regulations may also impact employment rates.

Studies Generally Show That If There Is More Investment in Capital