A closed economy that considers an investment opportunity capable of raising production in future years will:

Question

Quizplus · Accepted Answer

To invest in an opportunity capable of raising production in future years, a closed economy will need to cut consumption by the amount of the investment in the first year to achieve greater consumption in the future. This is because investment requires sacrificing some consumption in the present to obtain greater production and consumption in the future.

A Closed Economy That Considers an Investment Opportunity Capable of Raising