Question

What would be an economic benefit of a government's decision to build a

new highway?
A. People would no longer use an older, inconvenient road.
B. Spending would cause the economy to grow.
C. Money would have to be allocated from other transportation
projects.
O D. Taxes would have to be raised to pay for the project.

Answer 1

Answer: B. Spending would cause the economy to grow.

Step-by-step explanation:

To build a new highway, the government would have to spend money. Government spending is one of the main determinants of economic growth because it pumps money into the economy.

This will bring jobs to the country (for instance construction labor and engineers) which would increase the income of those people. Those people will then have more money to spend on goods and services thereby leading to economic growth.