Assume that the economy of a small island country in the Pacific behaves like the Solow model (version 1.0). Suppose the economy starts at a steady state level for capital. Draw this situation in the Solow diagram and label as point A. Global warming is expected to raise the sea level by a foot, which is expected to ruin the roads, housing stock and railroads of the country at a much faster rate than previously. Use the Solow diagram to predict the effects of sea-level rise for this country. Label the new steady state as point B. Which statement below best describes what will happen?