Assume that the domestic economy produces only consumption goods. Domestic output can either be domestically consumed or exported. Investment goods are not domesticallyr produced and must be imported. The price of investment goods in terms of consumption goods is equal to PK1=1. The economy is small in the sense that it cannot affect the price PK1. The world interest rate is equal to 0, i.e., r'1=0. The production function of domestic rms is equal to 3 III\". How does a marginai 1m: K .where H2 are prots in the second period. 1 increase in PK1 shift prots? Compute the value of