According to conservatives, what are the two ways to increase the rate of economic growth?
A) Increase savings and increase consumption.
B) Increase savings and increase gross investment.
C) Increase savings and increase the productivity of capital.
D) Increase savings and reduce taxes on wealthy investors.

Question

Quizplus · Accepted Answer

Conservatives believe that increasing savings and increasing the productivity of capital are the two ways to increase the rate of economic growth. By increasing savings, there will be more funds available for investment, which will lead to an increase in gross investment. At the same time, if the productivity of capital increases, there will be a higher output for the same amount of capital input. This will result in higher profits and hence, more savings that can be reinvested in the economy.

According to Conservatives, What Are the Two Ways to Increase