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e) Resolve for the profit maximizing level of fishing poles given these two (simultaneous) additional changes and add this point to your diagram as point

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e) Resolve for the profit maximizing level of fishing poles given these two (simultaneous) additional changes and add this point to your diagram as point C. (show work) (5 points) f) Finally, draw a desired investment diagram (completely labeled with the relevant shift variables noted next to the function in parentheses) depicting the initial equilibrium as point A (simply draw a negatively sloped I curve going through point A). Label the initial level of desired investment as I's. Note importantly that we do not have numbers for desired investment, but that's ok, we are focusing on the change in desired investment. Then show, as point B, the new level of desired investment as I g. Finally, show how the contractionary Fed policy along with the change in the MPK maps to your investment diagram and label as point C with the corresponding level of investment labeled as I c. A completely labeled and correct diagram is worth 10 points (make sure you include the relevant shift variables in parentheses or points will be taken off)

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