8.5. Consider the model of investment in Sections 82-85 Describe the effects of each of the following changes on the K = 0 and q = 0 loci, on K and q at the time of the change, and on their behavior over time In each case, assume that K and q are initially at their long run equilibrium values

(a) A war destroys half of the capital stock

(b) The government taxes returns from owning firms at rate 7

(c) The government taxes investment Specifically, firms pay the government y for each unit of capital they acquire, and receive a subsidy of y for each unit of disinvestment