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3. Let's assume that parameter b in the investment function is small. a. How an increase in the rental price (or interest rate) will affect

3. Let's assume that parameter b in the investment function is small.

a. How an increase in the rental price (or interest rate) will affect the level of investment in the economy? Why? Explain and use the models and graphs.

b. How an investment tax break will affect overall investment and the level of investment in the economy? Use model graph and explain

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