Answered

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How does investors' spending more money than was saved affect the economy if spending the money does not affect growth?

A. It will cause prices to rise.
B. It will cause prices to fall.
C. Neither A nor B.

Sagot :

GinnyAnswer

Final answer:

Excess spending by investors without impact on growth can lead to rising prices in the economy.


Explanation:

Investors' spending more money than was saved can lead to inflation as the excess spending increases demand without a corresponding increase in supply.

When spending surpasses savings without affecting growth, it can result in an imbalance causing prices to rise due to the excess demand.

Overall, if investors spend more than saved without impacting growth, it would likely cause prices to rise, affecting the economy through inflation.


Learn more about Impact of excessive investor spending on the economy here:

https://brainly.com/question/50852401


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