Order the answer to: Suppose the TFP parameter, ?, increases permanently. (a) What happens to

EssayParlour business-economics Order the answer to: Suppose the TFP parameter, ?, increases permanently. (a) What happens to

business-economics

Order the answer to: Suppose the TFP parameter, ?, increases permanently. (a) What happens to

Question Suppose the TFP parameter, ?, increases permanently.
(a) What happens to the desired capital stock?
(b) What happens to investment?
(c) Hard: What happens to the investment rate in the long run? Why?
Subject business-economics

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