Answer to Question #62162 in Macroeconomics for Beth Y.
addition, assume that foreign capital increases the level of total factor productivity from 1 to 2, by funding research and developments of new technologies. Do foreign capital inflows shift the supply curve, or the demand curve, or both curves in the capital market? Depict a diagram and explain effects of foreign capital inflows on the MPK, and the real rental rate of capital.
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