The ________ interest rate is adjusted for expected changes in the price level

If purchasing power parity tells us that if the exchange rate is a pound for a dollar, then price of a haircut in London should cost the same as a haircut in New York

Indicate whether the statement is true or false

In the neoclassical growth model, if two countries are exactly the same but one has a lower depreciation rate, we would expect that country to have

a. higher output, a higher capital-to-labor ratio, and the same per capita output growth in the steady state. b. higher output, a higher capital-to-labor ratio, and higher per capita output growth in the steady state. c. the same output and capital-to-labor ratio, but higher per capita output growth in the steady state. d. higher output, the same capital-to-labor ratio, and the same per capita output growth in the steady state.