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Investment in capital (that is, buying more equipment for a business) Question 20 options: requires that society sacrifice consumption goods in the present but will
Investment in capital (that is, buying more equipment for a business) Question 20 options: requires that society sacrifice consumption goods in the present but will lead to economic growth in the long-run. Every decision still carries a tradeoff. allows society to consume more in the present. Afterall, it is always possible to produce more capital and more consumer goods. necessarily decreases saving rates. If you are reinvesting money, you aren't saving it. involves no tradeoffs. Capital is exempt for all rules regarding opportunity costs
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