Answer: The saving rate is 0.30
Explanation:
The Golden Rule savings rate is referred to as the rate of savings which maximizes steady state level or growth of consumption.
Let k be the capital/labour ratio (i.e., capital per capita), y be the resulting per capita output ( y = f(k) ), and s be the savings rate. The steady state is referred to as a situation in which per capita output is unchanging, which implies that k be constant. This requires that the amount of saved output be exactly what is needed to one quip any additional workers and two replace any worn out capital.
In a steady state, therefore: sf(k)=(n+d)k
Growth rate of output =3%
Depreciation rate= 4%
Capital output ratio is (K/Y)
= 2.5
Begin the steady state condition:
S= ( σ + n + g) (k/Y)
S= (0.03+0.04) (2.5)
S= 0.175
Golden rule steady state
MPK= (0.03+0.04)= 0.07
Capital output ratio=
K/Y= Capital share / MPK
K/Y= 0.3/0.07
K/Y= 4.29
In the golden state, the capital output ratio is equal to 4.29 in comparison to the current capital ratio 2.5.
The saving rate consistent with the steady growth rate
S= ( σ + n + g) (k/Y)
S= (0.03 +0.04) (4.29)
S= 0.30
The saving rate that is consistent with the steady growth rate is 0.30
Answer:
$609,000
Explanation:
The revenue in June for Comfort Cords is the sum of the revenue from cords and hair ties.
The revenue from each is the product of the unit selling price and the quantity sold.
= 50000 * $12 + 9000 * $1
= $600,000 + $9000
= $609,000
Answer:
d. All people respond better to visual information than text.
Explanation:
- Visualization refers to an image of an object, situation or event, or any chart in the human mind. Visualization is the creation of a mental image of an object, image or situation in one's mind.
- Visualization is important in providing creative ideas to customers. It helps users understand the message. Humans respond and process visual data more appropriately than other data.
- The human brain processes images faster than texts, and most of the information transmitted to the brain is visual. Therefore, people respond better to visual information than text.
Any contractual arrangement between governments addressing their trading interactions is referred to as a trade agreement. Trade treaties can be bilateral or multilateral, that is, among two or more states.
<h3>Why are trade agreements important?</h3>
Countries engage in international trade because there are financial benefits to be had. These benefits include expanded product diversity, cheaper pricing, superior quality, enhanced technological spread, and increased consumption by the country as a whole. Increased trade openness has been associated with higher GDP growth.
Thus Option C is correct about the trade agreement.
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A contract known as an option grants the buyer the right, but not the duty, to purchase or sell an underlying asset (such as a stock or index) at a given price on or before a particular date (listed options are all for 100 shares of the particular underlying asset).
<h3>What is an option? Explain.</h3>
An option is a contract that grants the buyer the right, but not the responsibility, to buy the underlying asset (in the case of a call) or sell it (in the case of a put) at a certain price on or before a specific date.
Options are used by people for revenue, speculation, and risk hedging.
Because they draw their value from an underlying asset, options are classified as derivatives.
A stock option contract normally entails 100 shares of the underlying stock, but other underlying assets, such as bonds, currencies, or commodities, are also acceptable.
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