Investment Demand and Current Capital Stock (25 pts) Suppose that the rm has the following production function F( Kt, Nt) = At Kt^ * Nt^ Recall that our rm's optimality condition with respect to capital is the following: MPKt+1+ (1) = (1 + r). Now suppose that we have our goods market as detailed in class. Suppose that Savings Demand is a standard upward sloping curve. Draw and explain what happens to investment demand after the naturaldisaster. What happens to the equilibrium interest rate and the equilbrium level of investment