Economists consider rent seeking activity to be highly productive

Which of the following equations captures the aggregate capital stock of the economy in this year, Know?

A) Know = (1 - depreciation rate) × Klastyear + I B) Know = (1 + depreciation rate) × Klastyear + I C) Know = (1 - depreciation rate) × Klastyear × I D) Know = (1 - depreciation rate) × Klastyear - I The depreciation rate of capital in an economy is 10%. The investment on capital in the current year is $500.

The housing bubble experienced in 2006 in the U.S. was exhibited by the extraordinary rise in the ratio of prices of houses to rents on houses

a. True b. False Indicate whether the statement is true or false