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Suppose that the government announces today that they will raise government expenditures temporarily for two years, starting in three years from now. True, False or

Suppose that the government announces today that they will raise government expenditures temporarily for two years, starting in three years from now.

True, False or Uncertain? A dynamic adjustment in capital stock over time will be that k rises for the next three years, declines between year 3 and year 5, and then rises afterward, reverting back to the original steady state.

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