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Question
What happens to total output when it is divided between consumption and investment in a given year?
Options
Total output is excluded from both consumption and investment.
Total output is used only for investment.
Total output is divided between consumption and investment.
Total output is used only for consumption.
MCQ
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Solution
In a given year, total output is divided between consumption and investment. The allocation determines how much is available for present use and future productive capacity.
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