If country A has been investing a larger proportion of its domestic output than Canada has, then, we would expect:
A)a higher rate of growth of domestic output in country A than in Canada.
B)greater rightward shifts in country A's production possibilities curve as compared to Canada.
C)that in the long run living standards would rise more rapidly in country A than in Canada.
D)all of the above to happen.

Question

Quizplus · Accepted Answer

Investing a larger proportion of domestic output typically leads to higher growth, greater shifts in production possibilities, and improved living standards.

If Country a Has Been Investing a Larger Proportion of Its