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Consider a Solow economy at a steady state with a capital stock of $500 million. The economy receives $50 million worth of capital in foreign

Consider a Solow economy at a steady state with a capital stock of $500 million. The economy receives $50 million worth of capital in foreign aid. Output per- worker immediately _______ and capital per worker ________.

A. Increase; increases toward the steady- state

B. stays constant; stays constant

C. Falls; decreases toward the steady- state

D. Increases, decreases toward the steady- state

E. stays constant; decreases toward the steady -state

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