4) International Capital Flows (30 points) Assume that the production per worker can be described by the function: y = Akahi-a where y is output per worker, k is physical capital per worker, and h is human capital per worker. a) Calculate the marginal productivity of capital using the production function above. (5 pts) b) Assume this is a small open economy with perfect capital mobility, so that the world "price" of capital, I'w, equals the marginal productivity of capital. Solve for output per person as a function of Tw. (10 pts) c) Notice that there is no savings rate in your expression above. Does this mean that open economies that save a lot are not any better off than open economies which do not save? Why or why not? (5 pts)