If a nation devotes a larger share of its current production to consumption goods,then
A) its economic growth will slow down.
B) its PPF will shift outward.
C) its PPF will shift inward.
D) some productive factors will become unemployed.
E) it must produce at a point within its PPF.

Question

Quizplus · Accepted Answer

Investing a larger share of current production in consumption goods means less is being invested in capital goods, which are necessary for future production capabilities and economic growth. Therefore, economic growth will slow down.

If a Nation Devotes a Larger Share of Its Current