In a consumer-oriented economy, the decision to save in order to promote economic growth:
A)means a sacrifice of current consumption in order to enhance future consumption.
B)must be enforced by high levels of taxation.
C)cannot be expected to benefit future generations.
D)none of the above.

Question

In a consumer-oriented economy, the decision to save in order to promote economic growth:
A)​means a sacrifice of current consumption in order to enhance future consumption.
B)​must be enforced by high levels of taxation.
C)​cannot be expected to benefit future generations.
D)​none of the above.

Quizplus · Accepted Answer

When individuals choose to save instead of spending their current income, they are sacrificing current consumption in order to have more resources available for future consumption. This, in turn, can promote economic growth as the saved money can be used to fund investments and productive activities. High levels of taxation are not necessary for promoting savings, and saving can benefit future generations by providing resources for investment and growth.

In a Consumer-Oriented Economy, the Decision to Save in Order