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Which of the following statements, if any, is correct for a nation which is producing only consumption and capital goods? Other things equal, the more

Which of the following statements, if any, is correct for a nation which is producing only consumption and capital goods?

  • Other things equal, the more capital goods a nation produces, the greater will be its future growth rate.
  • There is no general relationship between the current division of output between consumer and capital goods and the future growth rate.
  • None of the above statements is correct.
  • Other things equal, the more consumer goods a nation produces, the greater will be its future growth rate.

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