The above figure illustrates that if this country wishes to move from its current production point (labeled "Current") and have 10 more tons of food, it can do this by producing

In the short run, the government deficit spending will most likely

A) raise the unemployment rate B) lower the inflation rate C) raise real interest rates D) lower private savings E) raise net exports

When drawn against the real interest rate, the optimal investment schedule shifts to the right if the

A) current capital stock K increases. B) current capital stock K decreases. C) future capital stock K' increases. D) future capital stock K' increases.