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The Principle of Diminishing Returns to Capital Implies That a Country

Question 42

Multiple Choice

The principle of diminishing returns to capital implies that a country that loses much of its capital during a war will:


A) experience a slower growth rate than before the war.
B) never catch up to its level of output before the war.
C) never be able to replace the capital lost during the war.
D) experience a faster growth rate than before the war.

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