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  • 13-03-2024
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How does the economy benefit when individuals save their money?

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  • 13-03-2024

Answer: When individuals save their money, the economy actually benefits in several ways. First, saving provides financial institutions with more capital to lend to businesses, which promotes investment and economic growth. Additionally, saving temporarily takes money out of the total economy, reducing the overall demand and helping to control inflation. Lastly, when individuals save their cash, they are less likely to rely on credit to make purchases, which can help to stabilize the economy and prevent excessive debt.

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