Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions .
Exhibit: Investment and Production Possibilities
-(Exhibit: Investment and Production Possibilities) Suppose the economy is operating at point m on curve A. The decision to move to point p
I. requires a sacrifice of current consumption.
II. requires a sacrifice of future consumption.
III. adds to the economy's capital stock assuming depreciation remains at a level corresponding to point m.
IV. enables the economy to increase both its consumption and investment in the future.

A) I and II only
B) I and III only
C) I, III, and IV only
D) I, II, III, and IV