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The investment industry most benefits the economy by: increasing domestic consumption. assisting in the allocation of...

The investment industry most benefits the economy by:

  1. increasing domestic consumption.
  2. assisting in the allocation of capital.
  3. facilitating the exchange of money for labour.
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Answer #1

The investment industry most benefit economy by assisting in the allocation of capital.

The investment industry contributes to the efficient allocation of resources in the economy. Without the investment industry, savers would have to spend significant resources finding individuals, companies, and governments offering suitable investment opportunities. Resources would also be spent on the search for capital rather than on considering how to best use it, which would result in less efficiency.

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