Figure 2-8
-Points A, B, and C in Figure 2-8 indicate consumption and investment for three economies. Other things constant, which of the economies is likely to grow more rapidly in the future?
A) economy A
B) economy B
C) economy C
D) They would all be expected to grow at the same rate.

Question

Figure 2-8 
-Points A, B, and C in Figure 2-8 indicate consumption and investment for three economies. Other things constant, which of the economies is likely to grow more rapidly in the future?
A) economy A 
B) economy B 
C) economy C 
D) They would all be expected to grow at the same rate.

Quizplus · Accepted Answer

Economy C is likely to grow more rapidly if it has a higher level of investment compared to consumption, as investment in capital goods can lead to greater future production capacity and economic growth.

Figure 2-8 -Points A, B, and C in Figure 2-8 Indicate Consumption