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Figure 14-1 Consumer goods per period C - V S B m A - n D W q U Capital goods per period Refer to

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Figure 14-1 Consumer goods per period C - V S B m A - n D W q U Capital goods per period Refer to Figure 14-1. 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. Il. requires a sacrifice of future consumption. Ill. 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. Select one: O a. I and Il only O b. I and Ill only O c. I, Ill, and IV only O d. I, II, Ill, and IV

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