Q1. Consider the change in investment in the Republic of Bauxia over time as shown below. Assume that Bauxia is initially in a steady state, there is no population growth or technological progress and the only output of Bauxia is aluminum, which is produced with a constant returns to scale technology. time Which of the changes described below, if they occurred, could plausibly correspond to the graph above? i. A bestselling new Bauxian self-help book results in the Bausian people becoming more patient and forward-looking. ii. An decrease enforcement of competition law by the government, so that firms' demand curves become permanently more inelastic. iii. An earthquake destroys 10% of the capital (i.e. aluminium plants) but kills no one. iv. An earthquake kills 10% of the population but destroys no capital. A) i. is plausible, ii. is plausible, iii. is plausible, iv. is plausible B) i. is plausible, ii. is plausible, iii. is plausible, iv. is not plausible C) i. is plausible, ii. is plausible, iii. is not plausible, iv. is plausible D) i. is plausible, ii. is plausible, iii. is not plausible, iv. is not plausible E) i. is plausible, ii. is not plausible, iii. is plausible, iv. is plausible F) i. is plausible, ii. is not plausible, iii. is plausible, iv. is not plausible G) i. is plausible, ii. is not plausible, iii. is not plausible, iv. is plausible H) i. is plausible, ii. is not plausible, iii. is not plausible, iv. is not plausible 1) i. is not plausible, ii. is plausible, iii. is plausible, iv. is plausible