Question

Investing contributes to economic growth in which of the following ways? (1 point)
A. Investors diversify their portfolios to minimize risk in the economy.
B. Investors earn returns on their investments, which increases their economic well-being.
C. Investors pool their funds into financial intermediaries that earn them larger returns.
D. Investor funds are loaned to firms, who use borrowed funds to purchase capital.

Answer 1

D. Investor funds are loaned to firms, who use borrowed funds to purchase capital.