Assume a competitive economy in which factor prices adjust to keep the factors of production fully employed. In addition, the interest rate adjusts to keep the supply and demand for goods and services in equilibrium. The economy can be described by the following set of equations:

Y=AK^aL^(1-a)

Y=C+I+G

C=C(Y-T)

I=I(r)

What are some of the policies that a government could use to increase the equilibrium quantity of investment in the economy and please

carefully explain how these policies produce this result.