2. Think about the "buy now, pary later"mentally in what ways might this attitude contribute to both economic growth and economic instability?

## Step 1<br />The "buy now, pay later" mentality refers to the practice of consumers purchasing goods and services with borrowed money, often through credit cards, loans, or other forms of credit. This practice can contribute to economic growth in several ways.<br /><br />## Step 2<br />Firstly, increased spending can stimulate demand for goods and services. This increased demand can lead to higher production levels and potentially more job creation, which can contribute to economic growth.<br /><br />## Step 3<br />Secondly, the use of credit can also stimulate economic growth by encouraging spending. This is because credit allows consumers to purchase goods and services that they may not have the immediate funds for, which can lead to increased demand and production.<br /><br />## Step 4<br />However, the "buy now, pay later" mentality can also contribute to economic instability. This is because the practice of borrowing money to purchase goods and services can lead to high levels of personal debt.<br /><br />## Step 5<br />If consumers are unable to repay their debts, this can lead to defaults and financial crises. This can destabilize the economy as it can lead to a decrease in consumer spending and a decrease in demand for goods and services.<br /><br />## Step 6<br />Furthermore, if the debt levels become too high, it can lead to a decrease in consumer confidence and a decrease in spending. This can lead to a decrease in demand for goods and services, which can contribute to economic instability.