question 15\nwhat is the impact of increasing capital investment on real gdp?\nit reduces consumer…

question 15\nwhat is the impact of increasing capital investment on real gdp?\nit reduces consumer spending\nit decreases productivity\nit increases the capacity for production\nit limits technological advancements

question 15\nwhat is the impact of increasing capital investment on real gdp?\nit reduces consumer spending\nit decreases productivity\nit increases the capacity for production\nit limits technological advancements

Answer

Brief Explanations:

Increasing capital investment allows firms to buy more machinery, build more factories etc. This expands their production - related resources, thus increasing the capacity for production. Higher production capacity generally leads to higher real GDP. The other options are incorrect as capital investment usually doesn't reduce consumer spending, doesn't decrease productivity (in fact, it often increases it), and doesn't limit technological advancements (it can facilitate them).

Answer:

It increases the capacity for production