ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Investment, not saving
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Saving, not investment
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Both saving and investment
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Neither saving nor investment
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Detailed explanation-1: -"Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Explanation :Saving makes the availability of fund for carrying out the investment activities. Investment cannot be carried out without saving.
Detailed explanation-2: -The economy relies heavily on trade, much of which depends on natural resources to produce goods or provide services. This includes water, waste, energy and food. Sustainable growth depends on green growth, sustainable development and renewable energy strategies.
Detailed explanation-3: -The more money is saved on an aggregate level, the more the supply of loanable funds will be. Greater availability of credit results in lower interest rates. This stimulates more firms and individuals to invest, as they can now borrow money for their investment at a lower interest rate.
Detailed explanation-4: -Savings are important determinants of wealth. At the macroeconomic level, governments attach importance to saving money in order to make new investments, to produce new capital goods and to sustain economic growth.
Detailed explanation-5: -Accumulation of capital stock. Increases in labor inputs, such as workers or hours worked. Technological advancement. 01-Jun-2015