Which of the following actions is likely to increase a nation's income?

The action most likely to increase a nation's income is government spending and investment. This is because when a government spends on infrastructure, education, healthcare, and public services, it creates jobs and stimulates economic activity. Increased government investment, especially in key sectors, leads to higher production levels, enhances public services, and can improve the quality of life for citizens, contributing to overall economic growth.

Government spending can also have a multiplier effect, where the initial spending leads to increased consumption and investment by individuals and businesses, further enhancing income levels throughout the economy. This ultimately raises the gross domestic product (GDP), which is a primary indicator of a nation's income.

On the other hand, while taxation is a critical mechanism for funding government activities and services, it generally reduces disposable income for individuals and businesses, which may have a dampening effect on consumption and investment in the short term. Imports can increase consumer choice and lower prices, but they can also lead to a net outflow of income from the country as money is spent on foreign goods. Savings, while important for personal financial security and long-term investment, do not directly contribute to income generation unless those savings are deployed into productive investment activities.