Final answer:
If an economy wants to increase its current level of investment, it must sacrifice current consumption. This means that the economy needs to reduce its current spending on goods and services in order to allocate more resources towards investment.
Step-by-step explanation:
If an economy wants to increase its current level of investment, it must sacrifice current consumption. This means that in order to allocate more resources towards investment, the economy needs to reduce its current spending on goods and services. By doing so, the economy can accumulate the necessary capital to fund investment projects such as buying machines, building plants, or conducting research and development.For example, a firm that wants to expand its production capacity may decide to sacrifice current consumption by investing in new machinery or infrastructure. This means that the firm will allocate its resources towards acquiring capital assets, rather than spending on immediate consumption.In this way, increasing investment requires redirecting resources away from current consumption towards future-oriented projects, which can contribute to long-term economic growth.