Investing contributes to economic growth in the following ways:
- Investors diversify their portfolios to minimize risk in the economy.
- Investors earn returns on their investments, which increases their economic well-being.
- Investor funds are loaned to firms, who use borrowed funds to purchase capital. These funds from investors are used by firms to purchase capital, which leads to economic growth.
Investing contributes to economic growth in which of the following ways? (1 point)
• Investors diversify their portfolios to minimize risk in the economy.
• Investors can invest in a bunch of different stocks to minimize their risk which causes economic growth.
• Investors pool their funds into financial intermediaries that earn them larger returns. Investors can invest their money into mutual funds to cause economic growth.
• Investors earn returns money on their investments, which increases their economic well-being.
Investor funds are loaned to firms, who use borrowed funds to purchase capital. Funds from investors are used by firms to purchase capital which leads to economic growth.
1 answer