Question: Show graphically how an increase in animal spirits (SP), which increases the expected MPK, will affect the optimal capital stock and hence investment. Assume here

Show graphically how an increase in animal spirits (SP), which increases the expected MPK, will affect the optimal capital stock and hence investment. Assume here that the firm uses the following condition to make the investment choice MPK (K, SP) = r + 6 and MPK(K, SP) is increasing in animal spirits SP

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