Problem
Suppose that zœ increases and that K increases at the same time. Show that it is possible for the real interest rate to remain constant as a result. What does this say about the model's ability to explain the differences between poor and rich countries and to explain what happens as a country's economy grows?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.