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26 February, 03:25

Why is investing important in an economy?

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  1. 26 February, 03:49
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    Investing is important to make the cash flow of the economy.

    Explanation:

    The most vital component of a growing economy is the cash flow.

    If the cash is not flowing from one business and one hand to another the economy is bogged down and then a slowdown occurs all across with a ripple effect.

    Investments constantly bring capital in for the companies that are then able to spend that investment and to bring more and more money into the cash flow of the economy thus strengthening the circulation and creating growth.

    This growth is what ultimately results in the growth of the whole economy.
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