For a given level of technology, a more rapid rate of economic growth can probably be achieved only if a country's citizens are prepared to

Question

Quizplus · Accepted Answer

Sacrificing present consumption means saving and investing in capital goods. This increases productivity and economic growth in the long run, even if it means giving up some immediate consumption. Other options such as decreasing interest rates or redistributing income may have limited impact on the rate of economic growth. Increasing demand for goods and services can spur short-term growth but may not be sustainable without investment in capital goods. Paying more taxes can provide government with more funds to invest, but it is also not a guaranteed solution for economic growth.

For a Given Level of Technology, a More Rapid Rate