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Unformatted text preview: consumptionoutput ratio, and *). ( 1 1 *) ( * 2 1 c u c u u + + = Note that r an must be converted back to an annual basis: ( 29 . 1 1 / 1+ = T an r r The capitaloutput ratio must also be converted back: ECN/APEC 6000/7230 Fall 2009 T y k y k an = c) How do the observables computed in (b) change if we make each of the following changes to preference parameters while holding all other parameters to their baseline parameters? Change θ = 0.5 and = 2? (This will require you to solve numerically for k *.) Change ρ an to 0.02 or 0.06....
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This note was uploaded on 01/09/2011 for the course ECON 7230 taught by Professor Feigenbaum during the Spring '10 term at Utah Valley University.
 Spring '10
 Feigenbaum
 Macroeconomics

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