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Gauge Invariance and Equations of Motion for Closed String Modes

We continue earlier discussions on the exact renormalization group and loop variables on the string world sheet for closed and open string backgrounds. The world sheet action with a UV regulator is written in a generally background covariant way by introducing a background metric. It is shown that the renormalization group gives background covariant equations of motion - this is the gauge invariance of the graviton. Interaction is written in terms of gauge invariant and generally covariant field strength tensors. The basic idea is to work in Riemann normal coordinates and covariantize the final equation. It turns out that the equations for massive modes are gauge invariant only if the space time curvature of the (arbitrary) background is zero. The exact RG equations give quadratic equations of motion for all the modes {\em including} the physical graviton. The level $(2,\bar 2)$ massive field equations are used to illustrate the techniques. At this level there are mixed symmetry tensors. Gauge invariant interacting equations can be written down. In flat space an action can also be written for the free theory.