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b (12 points) In a two period economy with production, an EXPECTED decrease in the productivity of capital (ie., a decrease in Aq) is translated

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b (12 points) In a two period economy with production, an EXPECTED decrease in the productivity of capital (ie., a decrease in Aq) is translated in (a) a fall in national saving, an expansion in investment, and a deterioration in the current account in period 1 . (b) a fall in national saving, a fall in investment, and a deterioration in the current account in period 1. (c) an increase in national saving, a fall in investment, and an improvement in the current account in period 1. (d) an increase in national saving, an expansion in investment, and an improvement in the current account in period 1. (e) an increase in national saving, an expansion in investment, and no change in the current account in period 1. Do not forget to include equations and graphs to support your answer. Explain the intuition

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