In an economy the interest rate is 5% and the depreciation rate is 20%. The price of capital is 1. A firm has the following production function Y-AK05N0.5 a. Find the marginal cost of capital b. Compute the investment desired by the firm, knowing that A=2, K=8, N=1. c. If the economy is a close economy, what is the amount of national savings? Instead, what if this was an open economy? Explain. d. If the government imposes a tax on firm revenues of 25%, how does the investment desired change? Compute it and show what happens in the Investment-Savings diagram, assuming this is an open economy and the government completely waste the revenues of this tax. In an economy the interest rate is 5% and the depreciation rate is 20%. The price of capital is 1. A firm has the following production function Y-AK05N0.5 a. Find the marginal cost of capital b. Compute the investment desired by the firm, knowing that A=2, K=8, N=1. c. If the economy is a close economy, what is the amount of national savings? Instead, what if this was an open economy? Explain. d. If the government imposes a tax on firm revenues of 25%, how does the investment desired change? Compute it and show what happens in the Investment-Savings diagram, assuming this is an open economy and the government completely waste the revenues of this tax