Which of the following practices is essential to sustain economic growth?

Sustaining economic growth often hinges on the ability of an economy to invest in its future. Higher savings rates play a crucial role in this process by providing the funds necessary for investment. When individuals and institutions save more, they contribute to a larger pool of capital that can be used for productive investments, such as building infrastructure, developing new technologies, or expanding businesses. This increased capital availability helps to drive economic growth by enhancing productivity and efficiency in the economy.

As higher savings lead to greater investments, they can facilitate the creation of jobs, increase overall economic output, and improve living standards. This practice also helps stabilize an economy by creating a buffer during economic downturns, as saved funds can be accessed to sustain consumption levels.

In contrast, while increased consumption can stimulate economic growth in the short term by boosting demand, it does not necessarily lead to sustainable growth if it is not supported by higher savings and investments. Higher import rates and regulatory limits on industries may have various economic implications, but they do not directly contribute to the fundamental need for capital accumulation that is central to sustaining long-term economic growth.