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Use the Following Graph to Answer the Following Questions

Question 158

Multiple Choice

Use the following graph to answer the following questions.
Use the following graph to answer the following questions.    -Suppose that the level of capital is 100,000,the depreciation rate is 5 percent,and investment is equal to 5,000.In this case,you would expect that A)  real gross domestic product will increase. B)  real gross domestic product will decrease. C)  real gross domestic product will remain unchanged. D)  the steady state value of capital will increase. E)  the steady state value of capital will decrease.
-Suppose that the level of capital is 100,000,the depreciation rate is 5 percent,and investment is equal to 5,000.In this case,you would expect that


A) real gross domestic product will increase.
B) real gross domestic product will decrease.
C) real gross domestic product will remain unchanged.
D) the steady state value of capital will increase.
E) the steady state value of capital will decrease.

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