Question

Between the U.S. and Nepal, Nepal invests less in new factories and equipment. This will likely cause:

A. Nepal's production possibilities curve to shift outward faster than the U.S.'s.
B. The U.S.'s production possibilities curve to shift inward faster than Nepal's.
C. The U.S.'s production possibilities curve to shift outward faster than Nepal's.
D. Nepal's production possibilities curve to shift inward faster than the U.S's.

Answer

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