What is one of the consequences of accumulating capital?
A) Accumulating capital requires that society sacrifice consumption in the present.
B) Accumulating capital allows society to consume more in the present.
C) Accumulating capital decreases saving rates.
D) Accumulating capital increases income inequality.

Question

Quizplus · Accepted Answer

Accumulating capital requires investment in production, which means sacrificing current consumption in order to generate future benefits. This can lead to short-term decreases in consumption levels, but in the long run, it can lead to higher levels of production and consumption.

What Is One of the Consequences of Accumulating Capital