Suppose Embryonica is an LDC with few skilled workers, a primitive banking system, and very little electric power. What do we know for sure that Embryonica is lacking?

If depreciation is less than gross investment, then net investment is

A) positive. B) negative. C) zero. D) This situation could never occur because it is impossible for depreciation to be less than gross investment.

Interest rates are positive because inflation makes purchases more expensive in the future than today

Indicate whether the statement is true or false