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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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