One Way That an Economy Can Grow in the Long

question 96

Multiple Choice

One way that an economy can grow in the long run is by:

• A) people saving some of their income and having it invested in capital goods by firms.
• B) people spending more of their income on consumption and less on saving.
• C) governments running continual budget deficits.
• D) people consuming more than they earn.

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Definitions:

Personal History

The unique collection of past experiences, events, and relationships that shape an individual's identity and personal narrative.

Recall

A memory task in which a person must produce required information by searching memory.

Retrieval Cues

Stimuli that assist in the recall of information stored in the memory.

Searching Memory

The cognitive process of actively retrieving information stored in the brain, involving various strategies and brain areas.