Saving is required for production because it provides the necessary funds for investment in capital goods, research and development, and training. Without saving, there would be insufficient investment, which could lead to a decline in productivity, incomes, and living standards in the long run.

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Saving Is _____

Question 17

Multiple Choice

Saving is _____

A) helpful for production but not necessary.
B) not useful for production because it decreases consumption.
C) required for production.
D) not useful for production because it is not a resource.
E) not useful for production because savers must be paid interest.

Correct Answer: