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4. Where do individuals spend the money they earn, and how does this keep the economy going?

Respuesta :

Individuals spend the money they earn on products produced by manufacturers. This keeps the economy going by allowing cash to flow through multiple hands during a single day. Because of this there is an inverse affect when people save their money instead of spending it.

It should be noted that people spend their money on food or housing as well as investments and this money become another person income and create jobs for others.

As a result of this money that is been spend on investment such as new industry, the economy will be improved.

Therefore, investment of the money by people helps the economy to grow So far this no inflation then then value of money will not goes down.

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