Which of the following statements, if any, is correct for a nation that is producing only...
Which of the following statements, if any, is correct for a nation that is producing only consumer and capital goods?
Multiple Choice
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None of these statements are correct.
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Other things equal, the more consumer goods a nation produces, the greater will be its future growth rate.
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There is no general relationship between the current division of output between consumer and capital goods and the future growth rate.
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Other things equal, the more capital goods a nation produces, the greater will be its future growth rate.
Homework Answers
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Other things equal, the more capital goods a nation produces, the greater will be its future growth rate.
Explanation: Capital goods increase the production capacity of the country.
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