Answer to Question #232263 in Macroeconomics for Charlotte Boakye

Question

Why is there trade-off between amount of consumption that people enjoy today and the amount of consumption that they can enjoy in the future

Answer 1

There is a tradeoff between the amount of consumption that people enjoy today and the amount of consumption that they can enjoy in the future because investment activities increases the potential output level of the economy in future. However the instiment is achieved through saving that is possible if consumption is reduced.