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Please try your best! suppose that the capital intensity of production () is 0.3, the mark-up is 20 percent, the depreciation rate is 6 percent

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suppose that the capital intensity of production () is 0.3, the mark-up is 20 percent, the depreciation rate is 6 percent and the real interest rate is 4 percent, and the desired capital/output ratio is 2.5. Now suppose there is a permanent increase in expected demand of 4%; calculate the increase in the desired capital stock as a percent of output (round your answer to the nearest 1%).

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