Reduce consumption and increase investment

Reference no: EM13700854

Suppose that society decided to reduce consumption and increase investment.

How would this change affect economic growth?

What groups in society would benefit from this change? What group might be hurt?

Reference no: EM13700854

Questions Cloud

What is the short-run market supply curve : Suppose the market for French fries is perfectly competitive. A small operator of a french fry stand has a short run total cost function STC(Q) = 4Q^2 - Q + 1. What is the profit maximizing output when the price is $7? At what price would the firm ch..

Replacement repeat ability assumption : Which of the following is the proper value to use as the " first cost" of the defender in a replacement analysis? Which of the following is a replacement repeatability assumption? When conducting a replacement analysis, which of the following equals ..

What role does competition play in technological development : It is mentioned that Whirlpool provides three different types of appliances that vary in the amount of features that are offered. Discuss the product differentiation across these types. How could this affect production costs negatively? Positively? W..

Organizational structure problem : Evaluate the decision-making process and its effect within the context of increased competition for health care dollars. Assess the wide range of challenging issues that you perceive will over the next five years affect NURSING HOMES.

Reduce consumption and increase investment : Suppose that society decided to reduce consumption and increase investment. How would this change affect economic growth? What groups in society would benefit from this change? What group might be hurt?

Substantial amounts of goods-services from other countries : Most countries import substantial amounts of goods and services from other countries. Yet the theory says a nation can enjoy a high standard of living only if it can produce a large quantity of goods and services itself. Can you reconcile these two f..

Decrease in government spending initially-primarily shifts : A decrease in government spending initially and primarily shifts which curve in what direction? An increase in government spending initially and primarily shifts which curve in what direction?

Shifts aggregate demand to the right : Which of the following shifts aggregate demand to the right?

Inflation is constant and nominal interest rate increases : If expected inflation is constant and the nominal interest rate increases, how does the real interest rate change?

User Account

All Pages