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  3. 2 suppose we started out at the steady state capital...

Question: 2 suppose we started out at the steady state capital...

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2. Suppose we started out at the steady state capital stock in the basic Solow growth model. If there subsequently were an increase in the supply of loanable funds due to more favorable tax treatment of individual interest income (and no shift in the demand for loanable funds), then we would expect to see current level. current level. its current level. its current level. its current level. a. economic growth rates increase in the short run and the nations capital stock to grow from its b. economic growth rates decrease in the short run and the nations capital stock to grow from its c. economic growth rates increase in the short run and the nations capital stock to decrease from d. economic growth rates decrease in the short run and the nations capital stock to decrease from e. economic growth rates stay the same in the short run and the nations capital stock to grow from

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