Which of the Government Policies Below Is Not Likely to Encourage

question 10

Multiple Choice

Which of the government policies below is not likely to encourage per capita economic growth?

• A)​High taxes on companies that spend a lot on capital formation
• B)​The use of tax revenues for investment and capital formation
• C)​Special subsidies for capital-intensive forms of production
• D)​Promotion of education and training programs for workers

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Definitions:

Regression Analysis

A statistical method for investigating the relationship between a dependent variable and one or more independent variables.

Durbin-Watson Statistic

A measure used in statistics to find out whether autocorrelation at lag one occurs in the residuals after performing a regression analysis.

First-Order Autocorrelation

The correlation of a signal with a delayed version of itself, particularly measuring the correlation between values that are one time period apart.

First-Order Autocorrelation

The correlation between values in a time series and the values immediately preceding them.