In order for a nation to be able to consume more in the future, it needs to
A) consume less today in aggregate and save the difference between consumption and income.
B) consume more today in aggregate and borrow the difference between consumption and income.
C) produce more today in aggregate and save the difference between consumption and production.
D) produce less today in aggregate and save the difference between consumption and income.

Question

Quizplus · Accepted Answer

By consuming less today and saving the difference, a nation can invest in capital goods, leading to increased production capacity and higher future consumption.

In Order for a Nation to Be Able to Consume