Question: [20 points] Consider the representative firm's maximization problem in our real in- tertemporal model with investment. As we have seen in lectures, the capital accumu-

[20 points] Consider the representative firm's maximization problem in our real in- tertemporal model with investment. As we have seen in lectures, the capital accumu- lation equation is K = (1 d)K I and the present-value of profits can be written as

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