Question

If the government uses tax money to pay for long-term investments such as roads or other infrastructure, what happens to the economy?
A investment decreases
B taxes increase
C investment increases
D taxes decrease

Answer 1

It definitely increases, the more that they invest the higher it becomes so I would go with C. Investment increases

Answer 2

Is this a theory type of question?

If it is and if it took place under president Calvin Coolidge then taxes likely would have gone up.

If you are talking about now, then investment might go up but in order to pay for it, the government will just print more money, so that taxes shouldn't go up.

I'd pick C.