Let's abandon the assumption that period one eamers choose not to invest. In period one, output is unaffected by eamers" investment. Rather, the enlargement of the capital stock causes higher output in periods two and beyond. The young in period two will be aware of the higher capital stock and its implications, For this scenario, let's assume that consumption smoothing is achieved (as in the questions above). Recall that investment effects consumption only through output. Wealth yields no income and is never consumed. 5. Use TABLE Two, below, to show the effects of higher period-one investment. The table shows the higher real interest rate and higher output in period two. lower() higher (T), no difference is implied by the scenarios = not different (ND), or Let's abandon the assumption that period one eamers choose not to invest. In period one, output is unaffected by eamers" investment. Rather, the enlargement of the capital stock causes higher output in periods two and beyond. The young in period two will be aware of the higher capital stock and its implications, For this scenario, let's assume that consumption smoothing is achieved (as in the questions above). Recall that investment effects consumption only through output. Wealth yields no income and is never consumed. 5. Use TABLE Two, below, to show the effects of higher period-one investment. The table shows the higher real interest rate and higher output in period two. lower() higher (T), no difference is implied by the scenarios = not different (ND), or