Which macroeconomic goal do investments in human capital and capital goods contribute to? How?

Question

A.
Such investments contribute to the goal of price stability by increasing consumer spending.

B.
Such investments contribute to the goal of economic growth by increasing government spending.

C.
Such investments contribute to the goal of economic growth by increasing economic productivity.

D.
Such investments contribute to the goal of price stability by increasing economic production.

Answer 1

C. Such investments contribute to the goal of economic growth by increasing economic productivity.

Investments in human capital (such as education and training) and capital goods (such as machinery and technology) enhance the productivity of labor and increase the overall efficiency of production processes. This leads to increased economic output and, ultimately, economic growth.