what may happen if savings are encouraged in an economy?
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A rise in the savings ratio can have a very significant impact on economic activity. ... If people save more, it enables the banks to lend more to firms for investment. An economy where savings are very low means that the economy is choosing short-term consumption over long-term investment.
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4
Answer:
A rise in the savings ratio can have a very significant impact on economic activity. if people save more, it enables the banks to lend more to firms for investment. An economy where savings are very low means that the economy is choosing short term consumption over long term investments
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