If an economy experiences an increase in its capital stock,everything else constant,then at constant world prices,it will

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Quizplus · Accepted Answer

An increase in the capital stock, with everything else constant, means the economy has more capital available for production. This typically leads to an increase in the production of capital-intensive goods because the economy can now produce these goods more efficiently. Conversely, the production of labor-intensive goods may decrease since the comparative advantage shifts towards capital-intensive production.

If an Economy Experiences an Increase in Its Capital Stock,everything