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An Island Nation Is in a Steady State

Question 89

Multiple Choice

An island nation is in a steady state.A major hurricane passes over the nation and destroys 25 percent of the physical capital.In the years that follow the storm,one would expect investment to ________ and net investment to ________.


A) decrease; decrease
B) increase; increase
C) decrease; increase
D) increase; decrease
E) decrease; remain the same

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