Any pro-growth policy that increases investment requires

Question

Quizplus · Accepted Answer

In order to increase investment, individuals or firms must sacrifice current consumption spending in order to allocate resources towards capital goods, which generate future returns. This may lead to an eventual increase in GDP and production of consumption goods, but it requires a sacrifice of current consumption in the short term. Reduced government spending may or may not be necessary or effective in promoting investment.

Any Pro-Growth Policy That Increases Investment Requires