A country loses much of its capital stock to a war. (Do not consider any other potential impact of the war.) a. This event should cause the country's current employment to decrease , output to decrease , and the real wage to decrease b. The loss of capital will cause desired investment to increase c. The effects on desired national saving of the war-time losses are ambiguous. One reason for desired saving to rise is A. that the decrease in capital stock ultimately causes the marginal propensity to consume to decrease. B. the effect of the change in current output through the consumption-smoothing motive. C. the Ricardian equivalence proposition. 3 D. that anticipated future income decreases. One reason for desired saving to fall is A. the Ricardian equivalence proposition. 3 B. the effect of the change in current output through the consumption-smoothing motive. C. that anticipated future income decreases. D. that the decrease in capital stock ultimately causes the marginal propensity to consume to increase. d. Assuming that desired saving does not change, the loss of capital causes the country's real interest rate to 1 and its quantity of investment to V