Suppose a Country Transfers Resources from the Production of Consumption

question 109

Multiple Choice

Suppose a country transfers resources from the production of consumption goods to the production of capital goods.The result of this shift will be to

• A)raise future consumption.
• B)raise current living standards.
• C)decrease the long-run growth rate.
• D)lower future living standards.
• E)raise current consumption.

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Definitions:

Agent's Act

Refers to actions taken by an agent on behalf of a principal, where the agent has the authority to affect the principal's legal position.

Principal's Conduct

Actions or behaviors of a principal (party who has authorized an agent to act on their behalf) that can affect the principal's legal rights and liabilities.

Express Ratification

The explicit approval or confirmation of an act or contract by all parties involved, often necessary for the act's validity.

Manifests Assent

The demonstration of agreement to the terms of a contract, often through an overt action or explicit consent.