Question

Some economists say that economic growth involves a​ trade-off between current generations and future generations. If a current generation raises its saving​ rate, what does it​ sacrifice?
A. Current consumption.
B. Human capital.
C. Capital deepening.
D. Both a and b.

Answer 1

Answer:A) Current Consumption

Explanation:

When consumption reduces there is more to reserve for future but if consumption increases then the future generation's consumption is at stake because level of savings will reduce in the current generation.