I need the answer to this question, along with an explanation as to how you got the answer. I have attached a picture of it below.

to produce more than before. 2. Suppose we started out at the steady state capital stock in the basic Solow growth model. If there subsequently were a decrease in the demand for loanable funds due to less favorable tax treatment of business investment (and no shift in the supply of loanable funds), then we would expect to see a. economic growth rates increase in the short run and the nation's capital stock to grow from its current level. b. economic growth rates become negative in the short run and the nation's capital stock to grow from its current level. c. economic growth rates increase in the short run and the nation's capital stock to decrease from its current level. d. economic growth rates become negative in the short run and the nation's capital stock to decrease from its current level. its current level. e. economic growth rates stay the same in the short run and the nation's capital stock to grow from