Refer to the scenario above. If both economies have the same depreciat

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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