Answer to Question #232264 in Macroeconomics for Charlotte Boakye

Question #232264
How does the savings relate to consumption and thus to economic growth
1
Expert's answer
2021-09-02T13:00:08-0400

As people consume less, they tend to save some income to utilize in other areas. This rise in savings yields bigger investments related to the growth in GDP. The savings further increase capital, which leads to the economic growth.


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