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.
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