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Grossman model is one of the mostly widely used model in analyzing the allocation of resources to health capital. Based on your understanding of this model, attempt the following questions. (i) In this model what happens to the optimal investment in health capital if interest rates fall? Give a reason for your answer. (ii) What happens to stock of health capital in Grossman's model if wage rate increases ceteris paribus? ] (iii) Briefly explain,using the Grossman model framework, the role that gender plays in the production of health during pregnancy. (iv) Based on your answer in question (iii does this constitute an investment or consumption in health capital?

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