Chinaʹs State Council Has Encouraged More Spending to ʺImprove Transportation

Chinaʹs State Council has encouraged more spending to ʺimprove transportation links and other infrastructure... .ʺ It will also ʺstep up its spending on vocational training and other educational programs for adults.ʺ
Suppose that capital goods are on the vertical axis while consumption goods are on the horizontal axis of Chinaʹs PPF. As a result of enacting the policies, we would expect
i. an expansion of Chinaʹs production possibilities.
ii. capital accumulation.
iii. an increase in human capital

A) i, ii and iii.
B) ii and iii only.
C) i and ii only.
D) i and iii only.

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