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What does stimulation of growth in a free market economy?In: Homeschooling |
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Answer
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.
First answer by Nav.etc. Last edit by Chetanjisharma. Contributor trust: 9 [recommend contributor]. Question popularity: 12 [recommend question]
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