g. Create a table with r*, k*, kr, 1k* 2 kr 2, and c* at the top.

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g. Create a table with r*, k*, kr, 1k* 2 kr 2, and c* at the top. Then fill in the first row for the case you just calculated; that is, A 5 24,500, B 5 500, and a 5 b 5 1.

h. Next, consider the case where A 5 11,668, B 5 500, a 5 1.1, and b 5 1. Fill in the second row of the table for this case and explain what is happening in terms of the change in interest rate elasticities.

i. Finally, consider the case where A 5 24,500, B 5 238.1, a 5 1, and b 5 1.1. Fill in the third row of the table for this case and again explain what is happening in terms of the change in interest rate elasticities.

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