Suppose that Nepal invests less in new factories and equipment than does the United States. This will likely cause:
A. The U.S.'s production possibilities curve to shift inward faster than Nepal's.
B. The U.S.'s production possibilities curve to shift outward faster than Nepal's.
C. Nepal's production possibilities curve to shift inward faster than the U.S.'s.
D. Nepal's production possibilities curve to shift outward faster than the U.S.'s.
Answer: B
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What will be an ideal response?
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