A higher rate of investment now will generate:
A) More saving now
B) More current consumption
C) More future production
D) More future inflation

Question

Quizplus · Accepted Answer

A higher rate of investment now will allow for more resources to be devoted to improving technology and increasing the production capacity of the economy, resulting in more future production. It does not necessarily lead to more current consumption or saving, and it may lead to future inflation if not managed properly.

A Higher Rate of Investment Now Will Generate