A. the consumption of consumer goods
B. early marriage
C. the importation of more consumer goods
D. savings and investment
Correct Answer: Option D
D. savings and investment
Explanation
Typically a higher savings rate, the fraction of GDP not consumed today, results in higher investment rates. Thus, the more a society invests (and saves) results in more production opportunities in the future, implying a higher rate of growth.
Saving can, therefore, be vital to increase the amount of fixed capital available, which contributes to economic growth. However, increased saving does not always correspond to increased investment. In the short term, if saving falls below investment, it can lead to a growth of aggregate demand and an economic boom.
