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It helps increase productivity

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11y ago
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12y ago

More money produced

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Q: How does investment impact economic growth?
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How does gold investment affects GDP?

Investment in Gold reduces supply of money needed for accelation in economic growth. To that extent that affects growth of GDP.


What has the author R M Sundrum written?

R. M. Sundrum has written: 'Instability of public sector investment' 'Savings, investment, and economic growth' 'Growth and development' 'Economic growth in theory and practice' -- subject(s): Classical school of economics, Economic development, Keynesian economics


Does government have negative impact in economic growth?

Yes always


What effect might increased savings have on economic growth?

Increased savings affects economic growth primary by changing the future level of savings with respect to investment. Since savings is matched to investment and investment is used to replace and purchase capital, future investment will determine the respective level of capital development. Economic growth, being a function of the factors of production, including capital, will be changed by increased savings by having a higher level of future capital. Moreover, increasing savings can increase or decrease future economic growth, depending on the difference between current investment and required investment. When current investment falls below required investment, future economic growth increases due to a savings increase and vice-versa. Decreasing growth is possible because factors of production have diminishing returns to scale, which means that increasing levels of capital have lower returns to productivity than previous units.


Explain a link between a rise in investment and a rise in economic growth?

Rise in investment in a country eventually leads to the rise in economy.


What is the impact of economic growth on a community?

economic growth became so low that people in a community suffered financially and economically in its own sense///


What was the impact of world war 2 on chicago?

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Is the impact of higher national saving on economic growth related to microeconomics?

no


The impact of Kyoto protocol towards the economic growth of Kuwait?

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Which industry had the most significant impact on the economic growth of the US in the 1920?

In the 1920 it was automobile significant impact