Consider an economy that is operating at its steady state. an increase in the investment rate in this economy will lead to a temporary increase in the growth rate.
In the Solow model, a larger saving rate has no long-term impact on the growth rate. Higher steady-state capital stock and level of output do follow a higher saving rate. The growth rate briefly increases as production changes from a lower to a higher steady-state level. Low rates of saving the result in small capital stock in the steady state and low levels of output in the steady state. Only in the near run do higher savings translate into quicker economic development. Up until the economy reaches its new steady state, an increase in the saving rate causes growth to accelerate.
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Answer:C
Explanation: this quantity is allocatively inefficient because the marginal cost of producing the last lawnmower exceeds the marginal benefit to consumers.
Answer:
the beta of the second stock is 1.77
Explanation:
The beta of the second stock is shown below;
Investment in each = (1 ÷ 3)
Now as we know that
Portfolio beta = Respective investments × Respective weights
1 = (1 ÷ 3 × 1.23) + (1 ÷ 3 × beta of the second stock) + (1 ÷ 3 × 0)
We assume the Beta of risk-free assets would be zero
1 = 0.41 + (1 ÷ 3 × beta of the second stock)
The beta of the second stock is
= (1 - 0.41) × 3
= 1.77
Hence, the beta of the second stock is 1.77
Theresa spends 2 hours running rather than watching tv with her friends. The opportunity cost to her of running is: the profits earned running per hour
The definition of an opportunity is a positive state of affairs for an effective outcome. An instance of an opportunity is a lunch meeting with a probable organization.
This opportunity will let you observe positive paths which lead toward reaching your desires and goals. If we want what is first-rate for our careers then taking an opportunity is important. possibilities assists individuals to expand work-associated capabilities allowing them to achieve efficient paintings inside our community. each community-based totally and facility-based totally talent improvement, employment, and schooling options are available. Possibilities are first-rate motivators because they promote innovation, dedication, and power. Even in industries with which an entrepreneur is surprised, particular opportunities for fulfillment are what makes enterprise exciting. entrepreneurs and commercial enterprise-owners alike ought to look for extra possibilities.
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