Question

Which of the following actions does not promote capital deepening?

a.) low population growth rate at the same time that capital stock expands;
b.) saving less and spending more of one's disposable income;
c.) borrowing money from foreign nations to invest in building infrastructure in this country;
d.) raising taxes to pay for building roads

Answer 1

saving less and spending more of one’s disposable income

Answer 2

I think the correct answer from the choices listed above is option B. All of the actions do promote capital deepening except saving less and spending more of one's disposable income. Hope this answers the question. Have a nice day.