The economy expected future marginal product of capital is MPK =90-0,05K₁+1 The current capital stock is 1650 units, capital depreciates at the rate of 20% per period. The price of capital equipment equals the general price level. Inflation is equal to zero. Firms pay taxes equal to 50% of their output. a) Nominal interest rate is 5% per period. Assume that there are no investment adjustment costs and calculate the level of desired gross investment. b) Redo (a) assuming that all prices in the economy are expected to increase by 5%. Despite the fact that inflation is expected, the nominal interest rate remains unchanged.