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Argue that it is better for the economy when households spend money. Argue that it is...

Argue that it is better for the economy when households spend money.
Argue that it is better for the economy when households save money.
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1)It is better for the economy when households spend money. If money is spent then money will come into circulation. With increase in spending it will mean that there is increase in demand . Increase in demand will induce more production as well as more employment. This will increase the overall level of GDP.

2) It is better for the economy when households save money. If households save money then that money can be used for investment. With increase in investment production can be increased leading to increase in employment. This will increase the overall level of GDP.

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