Question: 10. LO 7 Suppose that z and K decrease at the same time. Show that it is possible for the real interest rate to remain

10. LO 7 Suppose that z’ and K decrease at the same time. Show that it is possible for the real interest rate to remain constant as a result. What does this say about the model’s ability to explain the lack of capital or investment in the economic status of an economy?

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