Refer to the scenario above. If both economies have the same depreciation rate, then which of the following statements will be true?
A) Economy A will have a greater capital stock and a lower GDP than economy B.
B) Economy A will have a greater capital stock and GDP than economy B.
C) Economy A will have a lower capital stock and GDP than economy B.
D) Economy A will have a lower capital stock and a greater GDP than economy B.
ANSWER
B
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