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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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