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ehidna [41]
3 years ago
15

In the Solow growth model without population growth or technological progress, if investment is greater than depreciation, the c

apital stock will ____ and output will ____ as the economy converges to the steady state.
Business
2 answers:
Nat2105 [25]3 years ago
8 0

Answer:

Increase, increase

Explanation:

The correct answers to the blanks are;

First blank : Increase

Second blank : Increase

The Solow Growth Model is a model used in economics to measure the development in economy considering the changes in the level of output over time as a consequence of changes in the population. It also takes account the investment in economy and then the depreciation involved

This model was presented by Robert Solow an Amercian economist

SOVA2 [1]3 years ago
8 0

Answer:

In the Solow growth model without population growth or technological progress, if investment is greater than depreciation, the capital stock will <u>increase</u> and output will <u>increase</u> as the economy converges to the steady state.

Explanation:

A steady-state happens when there is efficient use of natural resources and fair distribution of the wealth generated from the development of the nations resources.

In Solow model states that economic growth is the result of three factors: labor, capital, and technology and the equilibrium growth path is a steady state in which “level variables” such as Investment and Output grow at constant rates and the ratios among key variables are stable.

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The lower of cost and market value (net realizable value) rule causes losses in the value of inventory to be recognized in the p
Gala2k [10]

Answer:

a. The value of inventory declines below cost.

Explanation:

  • The inventory values are the total cost of the value calculated at the ends of the inventory accounting period and the market value is compared by the lowering of the inventory costs.  
  • For each type of the item the net realized values cause a loss in the values of the inventory which needs to be recognized.
6 0
3 years ago
Dietterich Electronics wants its shareholders to earn a return of 15​% on their investment in the company. At what price would t
Tema [17]

Answer:

(a) price stock need =  $1.667

(b) price stock need =  $6.667

(c) price stock need =  $11.667

(d) price stock need =  $16.667

Explanation:

given data

return =  15​% = 0.15

to find out

what price would the stock need to be priced today

a. ​$0.25 constant annual dividend​ forever?

b. ​$1.00 constant annual dividend​ forever?

c. ​$1.75 constant annual dividend​ forever?

d. ​$2.50 constant annual dividend​ forever ?

solution

(a) price stock need = \frac{0.25}{0.15}

(a) price stock need =  $1.667

(b) price stock need = \frac{1.00}{0.15}

(b) price stock need =  $6.667

(c) price stock need = \frac{1.75}{0.15}

(c) price stock need =  $11.667

(d) price stock need = \frac{2.50}{0.15}

(d) price stock need =  $16.667

3 0
3 years ago
Which of the following statements is TRUE? (economics)
Angelina_Jolie [31]

Answer:

c

Explanation:

Banks are other lending entity's has access to a customer borrowing history. Through credit rating agencies, a bank can know whether a customer has a bad history in making loan repayments.

When a customer takes up a loan, banks share that information with a credit rating agency. The agency updated its records with the customer's national identity, such as the social security number. The banks keep on updating agencies on how each customer is meeting their obligation. Credit card payments are considered as loans.

Credit agencies rates each customer creditworthiness by assessing how they been repaying their debts. A higher credit score means the customer repays his loans promptly without missing installments. The information of each customer is available to all banks and lenders upon request.

6 0
3 years ago
A man has $245,000 invested in three properties. One earns 12%, one 10% and one 8%. His annual income from the properties is $23
astraxan [27]

Answer:

for 8% investment = $110000

for 12% investment = $55000

for 10% investment =  $80000

annual income for each property is

x amount for 8% investment = $8800

y amount for 12% investment = $6600

z amount for 10% investment = $8000

Explanation:

Given data

investment = $245000

rate 1 = 12%

rate 2 = 10%

rate 3 = 8%

annual income = $23400

rate = 8%  twice that invested at 12%

to find out

invested in each property and  the annual income from each property

solution

let us consider x amount for 8% investment

and consider y amount for 12% investment

and consider z amount for 10% investment

from question we say,  8% is twice that invested at 12%

x = 2y      ........1

and

x + y + z = 245000      .............2

put 1 in equation 2

2y + y + z = 245000  

z = 245000 - 3y            ...................3

and we can say that

0.08x + 0.12y + 0.10z = 23400              ...........................4

put equation 1 and 3 in 4

0.08(2y) + 0.12y + 0.10( 245000 - 3y ) = 23400

0.16y + 0.12y - 0.3y = -1100

0.02y = 1100

y = $55000

so x = 2(y) = 2(5500) = $110000

and z = 245000 - 3(55000) = $80000

so annual income for each property is

x amount for 8% investment = 0.08 × 110000 = $8800

y amount for 12% investment = 0.12 × 55000 = $6600

z amount for 10% investment = 0.10 × 80000 = $8000

4 0
3 years ago
Joe is one of the lead accountants for his company. Last month he was pressured to prepare the financial reports more quickly th
Minchanka [31]

Answer:

Explained.

Explanation:

Joe being the lead accountant for his company so, he prepares the financial reports.

Joe made mistakes in financial report making his  manager angry  because the resources at the Joe's company are limited and financial report that are timely and reliable would have helped the company to attract some financial investment.

6 0
3 years ago
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