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21 Jun 2019

Suppose that the level of capital in the economy is 200 units, the depreciation rate is 10%, and the level of investment is equal to 10 units. In this case:

  a.

investment is equal to net investment.
  b.

the economy is in a steady state.
  c.

the level of output will increase.
  d.

investment is less than net investment.
  e.

investment is greater than net investment.

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