Let's consider a two$-$country model with international capital movement $($home country and foreign country$).$ MPK ${?}^H$ : the marginal product of capital at home $$ K : capital $$ r : rental price of capital. The real rental price of capital at home before the capital movement is $r^H.$ When the international capital movement is permitted, the real rental price of capital in both countries will be balanced at the new level $r^{**}.$

If you compare the situation before and after international capital movements, how much has the production in the home country changed?

A$.d+e+f+g$

B$.$ d$+$e

C$.f+g$

D$.f+g+e$

E$.h+i+j$

$($Question $15$ continued$)$ If you compare the situation before and after international capital movements, how much has the total production in the whole world changed?

A$.h+i+j$

B$.$ d$+$e

C$.f+g$

D$.d+e+f+g$

E$.f+g+e$