Question 2 {It} points}: Consider the marginal product of capital for countri I and II displayed in the graph below. 'D 100 15!]l 200 Using the values displayed on the above graphI answer the following questions: a. {2 points]: Suppose there are no capital movements between the countries and the capital stock in country I is 15!) and the capital stock in country II is {EDD-15m = 5!]. In this case. what is the return to capital in country I? And in countryr II? b. {6 points} Suppose restrictions on capital ows are removed. In this case, would there he any capital movements? If so, in which direction {om country II to country I. or from country I to cormtry [I]? What is the return to capital in equilibrium? c. {4 points} Consider the case of free ow of capital described in part b. Using the graph above, show by how much the world output would increase as a result of the capital movement. Make sure to use the numbers in the graph to calculate the change in the world output. d. {3 points} Consider the case of free ow of capital described in part b. Docs the output of country I increases or decreases as a result of the capital movement? And what about country II? Using the graph above. show how the capital movement affects the output of each country. Make sure to use the numbers in the graph to calculate the change in each country's output