Politics and Government
Economics
Market Research

What does stimulation of growth in a free market economy?

Answer

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Wiki User
12/02/2015

Investment.

Investment expands the production ability of an economy, thus more goods and services are produced and sold which in turn brings more income.

Going further.....part of that income is saved and the savings are used as investments.

the second thing to be done is reducing taxes and intrest rates so that more money is avalable at lesser intrest thus making production cheaper and industries more profitable.

Lastly--- The intent of the above is to decrease costs of purchasing goods and services.