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Suppose two countries are identical in every way with the following exception. Economy A has a higher rate of depreciation (δ) than economy B. Given this information, we know with certainty that: A) Economy A will have a higher capital stock than economy B. B) Economy B will have a higher capital stock than economy A. C) Economy A and economy B will have the same capital stock. D) Both economy A and economy B will have zero capital stock.

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Economy A, we can conclude that: B) Economy B will have a higher capital stock than economy A.
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User Shinobi
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