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MissTica
2 years ago
12

At the current steady state capital-labor ratio, assume that the steady state level of per capita consumption, (C/N)*, is greate

r than the golden rule level of steady state per capita consumption. Given this information, we can be certain that...A. an increase in the capital-labor ratio will cause an increase in (C/N)*B. the capital labor ratio will tend to increase over timeC. a reduction in the saving rate will have an ambiguous effect on (C/N)*D. the capital labor ratio will tend to decrease over timeE. a reduction in the saving rate will cause a decrease in the steady state level of per capita consumption ((C/N)*)
Business
1 answer:
Blizzard [7]2 years ago
6 0

Answer:

C) a reduction in the saving rate will have an ambiguous effect on (C/N)*

Explanation:

The steady state consumption refers to the difference between how capital wears out or depreciates vs total output. In order to keep a steady state consumption, the savings rate (which equals investment) must be enough to replace any worn out or completely depreciated capital.

Since the consumption rate is already higher than the steady state consumption, the effect of a decrease in the savings rate is ambiguous. Every dollar earned by a household is either spent or saved, and in order for savings to decrease, spending must increase.

But in this case, the spending level is already too high. A decrease in savings should increase consumption but the effects of the increase in the capital labor ratio and the per capita consumption are not certain.

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Rhett made his annual gambling trip to uwin casino. on this trip rhett won $250 at the slots and $1,200 at poker. also this year
SIZIF [17.4K]

Answer:

Gross income=(1450-700)=$750

Explanation:

Gross income is the total earning before any taxes or deductions

In this case;

Gross income=Winnings-Losses

where;

Winnings=Slots+poker=(250+1200)=$1450

Losses=racetrack=$700

Replacing;

Gross income=(1450-700)=$750

5 0
3 years ago
What is your primary source of investment funds?
ArbitrLikvidat [17]

Answer:

A. Saving or personal income

Explanation:

7 0
2 years ago
How does the FDIC monitor banks?
Lynna [10]

FDIC monitor banks by analyzing Call Report data and examination findings relative to the emerging trends.

The FDIC monitor banks to ensure that they are operating within the bounds of the law and are not engaging in any illegal or unsafe practices. They also work to ensure that banks are providing customers with the best possible service and are protecting their deposits

If the FDIC finds that a bank is not meeting these standards, they will take action to correct the situation. As a result, the FDIC has a better understanding of the risks that banks face and is better equipped to protect consumers from financial fraud.

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7 0
1 year ago
Mercury Corporation issued 7,000 shares of no-par common stock for $15 per share. Mercury also issued 2,800 shares of $70 par, 6
inessss [21]

Answer:

Issue of  7,000 shares of no-par common stock for $15 per share

Financing Activity (FA).

Issue of 2,800 shares of $70 par, 6 percent noncumulative preferred stock at $80 per share

Financing Activity (FA)

Explanation:

Issue of  7,000 shares of no-par common stock for $15 per share

This represents capital funding and is included in the Cash Flow Statement as Cash Flow from Financing Activity.

Issue of 2,800 shares of $70 par, 6 percent noncumulative preferred stock at $80 per share

This transaction also represents capital funding and is included in the Cash Flow Statement as Cash Flow from Financing Activity.

7 0
3 years ago
Read 2 more answers
Wallace Heating is attempting to estimate its costs of manufacturing heating ducts for the coming year using the high-low method
Anna11 [10]

Answer:

Variable Cost per hour is $4.86

Explanation:

given data

Highest Cost = $27,049

Lowest Cost = $19,772

Highest Cost Driver = 4,168  hours

Lowest Cost Driver =  2,672  hours

solution

we get here Variable Cost per hour that is express as

Variable Cost per hour = (Highest Cost - Lowest Cost) ÷ (Highest Cost Driver - Lowest Cost Driver)   ......................1

put here value and we get

Variable Cost per hour = \frac{27049-19772}{4168-2672}    

Variable Cost per hour = \frac{7277}{1496}    

Variable Cost per hour = 4.86

so Variable Cost per hour is $4.86

5 0
2 years ago
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