FIGURE 2-9 -Refer to Figure 2-9. If Points a and B Indicate

Multiple Choice

FIGURE 2-9

-Refer to Figure 2-9. If Points A and B indicate consumption and investment for two different economies, other things held constant, which of the following statements about the growth of the economies is most accurate?

A) How fast either economy grows is uncertain since growth is not influenced by either consumption or investment.
B) Economy B will grow more rapidly.
C) The two economies will grow at the same rate because they are on the same production possibilities curve.
D) Economy A will grow more rapidly.