If a country devotes its resources to acquiring more physical capital, it will:

Question

Quizplus · Accepted Answer

Investing in physical capital increases a country's productivity by enhancing its ability to produce goods and services more efficiently. However, this investment often requires diverting resources from immediate consumption, which can lead to a decrease in current consumption levels. Additionally, the focus on building capital in the short term might not immediately translate into higher output per person, as the benefits of increased capital typically accrue over the longer term.

If a Country Devotes Its Resources to Acquiring More Physical