True or False: If people would prefer to have higher consumption spending and less future growth, the country may be over investing in capital. True False

True

Explanation:

The given statement asserts a true claim that if a country is expending a huge consumption spending but still carries a lower scope for future growth, then the country must be investing additionally in capital. Although, the investments are made with a risk of succeeding yet an adequate analysis is performed before investing and only projects with an expectation of attractive returns are encouraged. If it fails to do so, then it must be called over-investment. Hence, the statement is true.

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