Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A tree's growth
B
Soil fertility
C
Weather conditions
D
A gardener's tools
Understanding the Answer
Let's break down why this is correct
Answer
Investment spending is important for GDP growth because it acts like a seed that helps the economy grow over time. Just as a seed needs water, sunlight, and care to grow into a strong plant, investment spending requires resources and time to develop into a thriving economy. When businesses invest in new equipment or projects, they create jobs and increase production, which leads to higher GDP. For example, if a company builds a new factory, it not only creates jobs but also boosts the local economy as more people earn money and spend it. Therefore, investment spending is the starting point, like a seed, that can lead to larger economic growth in the future.
Detailed Explanation
Investment spending helps the economy grow, just like a seed helps a tree grow. Other options are incorrect because Some might think soil fertility is the main thing for growth; Weather conditions are important, but they are not the starting point.
Key Concepts
Investment Spending
GDP Change
Multiplier Effect
Topic
Investment Spending and GDP Change
Difficulty
easy level question
Cognitive Level
understand
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