3 years ago

Why is investing important in an economy?

Business

1 answer:

zheka24 [161]3 years ago

8 0

Investing is important to make the cash flow of the economy.

Explanation:

The most vital component of a growing economy is the cash flow.

If the cash is not flowing from one business and one hand to another the economy is bogged down and then a slowdown occurs all across with a ripple effect.

Investments constantly bring capital in for the companies that are then able to spend that investment and to bring more and more money into the cash flow of the economy thus strengthening the circulation and creating growth.

This growth is what ultimately results in the growth of the whole economy.

You might be interested in

Consider a country that is operating under a system of flexible exchange rates. If the central bank in this country imposes an e

UNO [17]

Answer:

i a depreciation of its currency;

Explanation:

A flexible exchange rate is when exchange rate is determined by the forces of demand and supply.

an expansionary monetary policy is a policy where the monetary authorities increase the money supply in the economy.

If exchange rate is flexible and an expansionary monetary policy is carried out, the supply of money would exceed its demand. as a result, the value of money would fall. this is known as depreciation

3 0

2 years ago

If mara’s puzzle factory is operating at a quantity in which the marginal revenue from the last puzzle produced is $20, marginal

soldier1979 [14.2K]

The condition for a profit maximising point is where MR = MC.

When MR is greater than MC, the firm should increase production to take hold of the extra profit, therefore Mara should increase production.

7 0

2 years ago

The goal of study skills and strategy instruction is to

Norma-Jean [14]

STUDY EVERYDAY AND MAKE SURE IF YOU NEED HELP ASK

3 0

2 years ago

How is everyones day? Make sure you haven eaten or drank something!

Fudgin [204]

Answer:

the day is good

Explanation: