Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 36 - Part XIII - Six Debates over Macroeconomic Policy - Problems and Applications - Page 816: 8

Answer

The trade off society faces if society chooses to save more is that society will have less consumption today (than if society chose to consume the savings today).

Work Step by Step

The government might increase national saving by cutting the budget deficit. (This would increase public saving. In turn, this would increase the total amount of saving in the country.)
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