According to the neoclassical model of investment,the immediate impact of an earthquake that destroys part of the capital stock will be to:
A) increase the cost of capital,the rental price of capital,and the rate of investment.
B) increase the rental price of capital and the rate of investment,but leave the cost of capital unchanged.
C) increase the rental price of capital and the cost of capital,but leave the rate of investment unchanged.
D) increase the rental price of capital and the rate of investment,but decrease the cost of capital.
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