Figure 2-3
Points A and B in Figure 2-3 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.

Question

Figure 2-3 
Points A and B in Figure 2-3 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.

Quizplus · Accepted Answer

Economy B is likely to grow more rapidly in the future because it has a higher level of investment, which helps to drive economic growth. Consumption alone does not drive economic growth, so economy A may not be able to sustain high levels of growth without an increase in investment as well.

Figure 2-3 Points a and B in Figure 2-3 Indicate Consumption and Indicate