Answer:
A higher rate of investment now will generate
more future production.
Explanation:
In the long run, the rate of investment will increase the economy's capacity to produce, thereby shifting the Long-run Aggregate Supply (LRAS) curve to the right. An increase in investment shifts the LRAS curve to the right. This implies that a higher rate of investment now increases the current inflation but generates more future production, more future consumption, and boosts Aggregate Demand and short-run economic growth.
