Show the long run effect of the increase of a large open economy’s MPK (marginal product...

Show the long run effect of the increase of a large open economy’s MPK (marginal product of capital) on the interest rate, real exchange rate and net exports using the large open economy model.

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Rahul Sunny answered 2 years ago

Explain why in the long run marginal cost = w/MPL = r/MPK

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