Answer:
What is the steady-state value of the capital-labor ratio, k?
k = 16
Explanation:
Suppose that an economy has the per-worker production function given as follows:
yt = 5kt^0.5
where y = output per worker
k = capital per worker
k = sy - (n+d)×k
0 = s(5k^0.5) - (0.10+0.15)×k
0 = 0.20(5k^0.5) - 0.25k
0.25k = k^0.5
k^0.5 = 1/0.25
k^0.5 = 4
k^1/2 = 4
Taking square of both of the sides:
(k^1/2)² = (4)²
k = 16
Assume company x deposits $100,000 in cash in a commercial bank. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, the bank can increase loans by a maximum of $500,000.
Reserve ratio = 20% = 20/100 = 0.25
Initial Money supply = (1/Reserve ratio)*New Deposit = (100,000/0.25) = $ 400,000
Reserve ratio = Rerserve / Deposit
=> Reserves = 0.25*100,000 = 25,000
Max Increase in Money Supply = Initial Money Supply + Reserves/ Reserve Ratio
= $ 400,000 + 100,000
= $ 500,000.
The term commercial bank refers to financial institutions that accept deposits, provide checking account services, issue various loans, and provide basic financial products such as certificates of deposit (CDs) and savings accounts to individuals and small businesses. refers to
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Answer:
The correct answer is D that is $4.49
Explanation:
The US dollar price of the shampoo is computed as:
Price in US = (Price in Canada × Real exchange)/ Nominal exchange rate
where
Real exchange is 0.90
Price in Canada is 6
Nominal exchange rate is 1.2
Putting the values above:
Price in US = (6 × 0.90) / 1.2
= 5.4 / 1.2
= $4.49 or $4.5
Geraldo owns a well-known brand and allows Henry to sell products with that brand name. Geraldo has agreed to: product and trade name franchising.
<span>A franchiser is the persn that licenses its know-how, procedures, intellectual property and use of its business model and brand. In our case the franchiser is Geraldo. He gives the rights to sell its branded products and services to Henry, who is called a franchisee.</span>
Taken loan must be repaid. So
before taking the loan amount a person should plan properly. Kyle needs money to
buy shoes for his kids as well as for the vacation. But he also needed the loan
for his further studies. In that case he will face difficulties in repaying as well as in completing
his studies. For this lack of good financial planning he would have problems in 1.Repaying the loan amount 2. continuing his studies further.
