Why is there a trade-off between the amount of consumption that people can enjoy today and...

Why is there a trade-off between the amount of consumption that people can enjoy today and the amount of consumption that they can enjoy in the future? Why can’t people enjoy more of both? How does saving relate to investment and thus to economic growth? What role do banks and other financial institutions play in aiding the growth process? LO4

Expert Solution

Therere is a trade-off between the amount of consumption, is said to be, if the people enjoying more and more today, nothing will be available for future generation.if people consuming very less and less and the sources will be available for further use. Therefore, the potential level of output will be increased. If people were coming forward to minimize the current consumption, may it is possible.

Rahul Sunny answered 2 years ago

Why is there a trade-off between the amount of consumption that people can enjoy today and...

Why is there a trade-off between the amount of consumption that people can enjoy today and the amount of consumption that they can enjoy in the future? Why can’t people enjoy more of both? How does saving relate to investment and thus to economic growth? What role do banks and other financial institutions play in aiding the growth process? LO4

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Why is there a trade-off between the amount of consumption that people can enjoy today and...

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Why is there a trade-off between the amount of consumption that people can enjoy today and...

explain why economic investment in capital represents a trade-off between present and future consumption in detail?

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