Refer to the scenario above. If both economies have identical deprecia

Refer to the scenario above. If both economies have identical depreciation rate, then:

A) economy A’s steady state equilibrium will lie to the left and above economy B’s steady state equilibrium.
B) economy A’s steady state equilibrium will lie to the right and below economy B’s steady state equilibrium.
C) economy A’s steady state equilibrium will lie to the left and below economy B’s steady state equilibrium.
D) economy A’s steady state equilibrium will lie to the right and above economy B’s steady state equilibrium.

ANSWER

D