A storm destroys several factories, thereby reducing the stock of capital. What effect does this event have

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A storm destroys several factories, thereby reducing the stock of capital. What effect does this event have on factor markets?

a. Wages and the rental price of capital both rise.

b. Wages and the rental price of capital both fall.

c. Wages rise, and the rental price of capital falls.

d. Wages fall, and the rental price of capital rises.

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Principles Of Microeconomics

ISBN: 9781305081673

7th Edition

Authors: N Gregory Mankiw

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Question Posted: Nov 02, 2024 05:01 AM

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A storm destroys several factories, thereby reducing the stock of capital. What effect does this event have

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Principles Of Microeconomics

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