Problem
1. How is optimal investment affected by an increase in future total factor productivity?
2. Explain how credit market uncertainty affects the investment decision of the firm.
3. What is the government's budget constraint in the real intertemporal model? Can the government run a deficit or run a surplus in the current period?
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.