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Which of the following is NOT true of the real business cycle model? O a. The model assumes that business cycles are driven by shocks

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Which of the following is NOT true of the real business cycle model? O a. The model assumes that business cycles are driven by shocks to TFP O b. In the model, an increase in saving will lead to more capital and therefore more output next period O c. The solution to the model will set the marginal rate of substitution between consumption today and tomorrow equal to one plus the marginal product of capital net of depreciation O d. All of these are true

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