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Assume that you were indifferent between investing in Country 1 or Country 2 prior to the war (i.e. capital carried the same rental rate). Also
Assume that you were indifferent between investing in Country 1 or Country 2 prior to the war (i.e. capital carried the same rental rate). Also assume that the only effect of the war was in terms of capital losses: Country 2, where the war took place, lost 10% of its stock of capital, while Country 1 did not lose any of its capital. In which country would you invest after the war and why
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