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Consider Two Countries, Germany and Sweden

Question 19

Multiple Choice

Consider two countries, Germany and Sweden. Germany devotes a larger portion of its production to investment. Which of the following statements is most likely true?


A) Germany's production possibility curve will shift outwards and to the right further and faster than Sweden's.
B) Germany will move up its production possibility curve faster than Sweden.
C) Sweden is producing inside its production possibility curve, while Germany is producing at a point on its production possibility curve.
D) Germany is a poorer country than Sweden.

Correct Answer:

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