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Author Question: Which of the following is most likely if there is a war that destroys a country's stock of capital ... (Read 46 times)

storky111

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on: Jun 30, 2018
Which of the following is most likely if there is a war that destroys a country's stock of capital to a level below the steady state equilibrium?
 
  A) The GDP will be equal to the steady-state equilibrium level of GDP.
  B) The investment in capital will suffice to replenish the depreciating capital.
  C) The GDP will be more than the steady-state equilibrium level of GDP.
  D) The investment in capital will be lower than the amount required to replenish the depreciating capital.

Question 2

Institutions that channel funds from suppliers of financial capital to users of financial capital are referred to as:
 
  A) deposit insurance committees. B) financial intermediaries.
  C) central banks. D) mutual funds.


jamesnevil303

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


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