Question: Question 2 (50 points) Suppose that 2' increases and that K increases at the same time. Show that it is possible for the real interest

 Question 2 (50 points) Suppose that 2' increases and that K

Question 2 (50 points) Suppose that 2' increases and that K increases at the same time. Show that it is possible for the real interest rate to remain constant as a result. Explain how the key macroeconomic variables change. What does this say about the model's ability to explain the possible differences in the interest rates between poor and rich countries

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