Question

A policy that increases saving a. will improve economic growth and health outcomes. b. will worsen economic growth, but improve health outcomes. c. ​will improve economic growth, but worsen health outcomes. d. will worsen economic growth and health outcomes.

Answer 1

Answer:

(A). Will improve economic growth and health outcomes.

Explanation:

A policy that increases savings will lead to a decrease in consumption and as such, will provide more opportunities for investment.

With an increase in investment, there will be an increase in the gross domestic product (GDP) of the economy which results in economic growth and improved physical and mental health of citizens.

Answer 2

The growth of economy is very important for every nation. The gross domestic product shows the growth of the economy.

What is the effect of increasing savings through a policy?

The policy that emphasizes on increasing savings will result in the decrease in expenditure by the people. More savings will result in more Investment.

An increase in investments will result in the higher Gross Domestic Product of a country and this will eventually result in the growth of economy as a whole.

Therefore ,  policy that increases saving "will improve economic growth and health outcomes" and OPTION A is correct.

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