Suppose that the level of capital in the economy is 200


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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Microeconomics: Suppose that the level of capital in the economy is 200
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