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Consider the model of chapter 11.Suppose that z and K decrease at the same time.Show that it ispossible for the real interest rate to remain
Consider the model of chapter 11.Suppose thatzandKdecrease at the same time.Show that it ispossible for the real interest rate to remain constant as a result. What does this say about the model'sabilitytoexplainthelackofcapitalorinvestmentintheeconomicstatusofaneconomy?
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