Points A and B in the figure shown indicate consumption and investment for two economies. Other things constant, which of the economies is likely to grow more rapidly in the future?
(A) economy A
(B) economy B
(C) They can be expected to grow at the same rate.
(D) This is uncertain since growth is not influenced by the factors indicated in this example.
(E) Neither economy will experience growth as they are not maximizing their current investment.
Ans: (B) economy B
Explanation: Since country B has more current investment than current consumption when compared to the levels of country A , so country B is likely to grow rapidly in future . More investment means more production which means more growth
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