c) Now conditions change as the value of the US dollar appreciates and since you purchase your fishing poles from abroad, the real price of brand new fishing poles falls to 300 hours of fishing Resolve for K* and show as point B on your uc/K diagram (5 points). d) Explain the intuition underlying the change in the profit maximizing level of fishing poles (i.e., why does the firm change its behavior?), making sure you refer to the firm's profit maximizing condition (write it out!). Be specific and write this like you were a professional economist! (use some jargon!) (5 points). Now suppose we experience two more changes simultaneously (in addition to the change in the real price fishing poles above). In particular, you change your expectations on the marginal productivity of capital, since you feel that the economy is finally recovering from a long drawn out recession (positive animal spirits) and as a result, your new expected marginal product of capital function is: MPK = 400 - 5K. The Fed feels the same and raises the real rate up to 0.10 (10%) to keep the economy from 'overheating