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2. Suppose the government provides incentives (e.g. lower company tax) to rms that engage in high levels of research and development. a. How would this

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2. Suppose the government provides incentives (e.g. lower company tax) to rms that engage in high levels of research and development. a. How would this affect rms' allocation between different types of investment? Explain. b. How would this affect the interest rate? Explain. c. What happens to the quantity of investment overall? Explain. d. What happens to the shbrtrun aggregate supply curve? Explain. e. What happens to the long-run aggregate supply curve? Explain. f. What happens to the value of the dollar? Explain. g. What happens to the quantity of net exports demanded? Explain. h. What happens to aggregate demand? Explain

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