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I need help with the Ramsey-Cass-Koopmans model without technological progress Consider a Ramsey-Cass-Koopmans economy without technological progress with gov- ernment spending that is financed by

I need help with the Ramsey-Cass-Koopmans model without technological progress

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Consider a Ramsey-Cass-Koopmans economy without technological progress with gov- ernment spending that is financed by a lump-sum tax (the government spending does not provide any utility to the households). (a) ow oes t e government spen ng ect t e liiOIi liiSiid 1iAiifGidlt10n. (b) Assume that the economy is on its BGP. At time O, the government suddenly increases -r but announces that it will return to the lower initial level at some later point in time h. What are the effects of this temporary and unanticipated change in government purchases on the paths of consumption, capital, an the interest rate?

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