Increasing the amount of consumption spending and reducing the amount of savings ________ investment expenditures, and ________ long-run economic growth in the economy.

Question

Quizplus · Accepted Answer

Increasing consumption spending typically means that less is being saved. Lower savings can lead to decreased investment expenditures because there are fewer funds available for investment. Over the long term, reduced investment can hinder economic growth, as investments in things like infrastructure, technology, and education are critical for sustained economic development.

Increasing the Amount of Consumption Spending and Reducing the Amount