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elena-14-01-66 [18.8K]
3 years ago
5

A higher rate of investment now will generate Multiple Choice more future inflation. more future production. more current consum

ption. more saving now.
Business
1 answer:
andrew-mc [135]3 years ago
3 0

Answer:

A higher rate of investment now will generate

more future production.

Explanation:

In the long run, the rate of investment will increase the economy's capacity to produce, thereby shifting the Long-run Aggregate Supply (LRAS) curve to the right.  An increase in investment shifts the LRAS curve to the right.  This implies that a higher rate of investment now increases the current inflation but generates more future production, more future consumption, and boosts Aggregate Demand and short-run economic growth.

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