Question

SELECT ALL THAT APPLY. Select the items that describe how business investments can cause economic growth.

1. Investments increase GDP.
2. Investments create more jobs.
3. Investments cause less spending.
4. Investments can lead to more demand for goods.

Answer 1

1,2,4

Step-by-step explanation:

One of the core drivers of an economy is investment. For a country to grow economically, investment (both domestic and external) are very vital as they increase the total economy’s production (GDP). With investment, it means that more job opportunities will be created hence increased production. It is a fact that investment is attached to aggregate demand of goods and services, increased investments increases demand of goods. Therefore, options 1,2,4 are correct.