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Consider the production function: Suppose the supply of capital increases.In equilibrium, A the real wage rate will falland the real rental rate of capital will

Consider the production function:

Suppose the supply of capital increases.In equilibrium,

A the real wage rate will falland the real rental rate of capital will rise

B Both the real wage rateand the real rental rate of capital will rise

C the real wage rate will riseand the real rental rate of capital will fall

D Both the real wage rate and the real rental rate of capital will fall

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