Consider the Ramsey-Cass-Koopmans model. Suppose there is an unanticipated increase in the discount rate (individuals become less patient). Unlike the standard version of the model where technology growth g is exogenous, let us assume that a higher leads to less growth. (For example, the Romer model predicts an inverse relationship between and g since a higher implies fewer workers engaged in R&D.) We ignore the other determinants of g and write simply g() where g() < 0. Use the Phase Diagram (Romer g. 2.3) to show the eects of the increase in in this case. Assume that the change in is greater than the absolute change in g(). How do the new levels of c and k compare to what they would have been in the standard case where increases but and g are uncorrelated?