​Exhibit 3-10 -Refer to Exhibit 3-10. If Points a and B Indicate

Multiple Choice

​Exhibit 3-10
-Refer to Exhibit 3-10. If Points A and B indicate consumption goods and capital goods for two different economies, other things held constant, which of the economies is likely to grow more rapidly?

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