al, Accumulation, and the Economics of Ideas t Score: 69.3% n Expand Resources | C2 Give up? | Hint tion 8 of 11 Growth, Capital, Accumulation, and the Economics of Ideas: End of Chapter Problem 26, let's think about two countries, Frugal and Smart. In Frugal people devote 50% of GDP to making new investment goods, so -0.5, and their production function is Y . VR. In Smart, people devote 25% of GDP to making new investment goods, so -025 and their production function is Y-2VK. Both countries start off with K-100. a. What is the amount of investment in each country this year? Investment, Frugal: Investment, Smart: b. What is the amount of consumption (GDP-investment, or Y-1 ) in each country this year? Consumption, Frugal: Consumption, Smart: c. Where would you rather be a citizen: Frugal or Smart? O Frugal O There is no appreciable difference between the two countries. Smart MacBook Air 4) 0