suppose that consumption is growing at a constant rate growth rate g We will later call such a situation a balanced growth path Use the consumption Euler equation to derive a relationship between the growth rate g and the (constant) real interest rate r along the balanced growth path 5 Suppose that growth g increases What happens to the interest rate r How does your answer, quantitatively, depend on the size of the intertem poral elasticity of substitution 1 Give some intuition for your