Suppose that in the economy the level of capital is 500 units,the depreciation rate is 4%,and the level of investment is 20 units.In this case:
A) net investment is negative.
B) net investment is positive.
C) the level of output will decrease.
D) the level of capital will increase.
E) the economy is in a steady state.

Question

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The Answer of Suppose that in the economy the level of capital is 500 units,the depreciation rate is 4%,and the level of investment is 20 units.In this case:
A) net investment is negative.
B) net investment is positive.
C) the level of output will decrease.
D) the level of capital will increase.
E) the economy is in a steady state.

Suppose That in the Economy the Level of Capital Is