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:
Explanation:
<u>First we do Q1</u>
beginning + receipts - disbursement
then we compare the this balance with the minimun.
in this case this open the needs for financing
We end with the minimun cash balance of 10,000
This will be the beginning for Q2
<u>Now, we do Q2</u>
same process
beginning + receipts - disbursement
but this time we also calculate the interest
35,000 x 3% = 1,050
which also decrease the cash before financing.
We now compare with the minimun balance and paid the finance
We end the Q2 with a balance of 94,950
Q3 and Q4 follow the same procedure,
beginning + receipts - disbursement
compare with minimun
if below add financing, if not, don't.
Answer:High purchasing power
Explanation:High purchasing power is the financial ability to buy products and services.
Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase.
The costs of goods and services are among the most important determinants of purchasing power. When the price level rises, purchasing power decreases, and when the price level falls, purchasing power increases, if all other factors are held equal.
Answer:
Larger than
Explanation:
The b2b market which is the business to business market is larger than the consumer market in terms of number and dollar volume of transactions. This is majorly due to the fact that business to business transactions entails wholesaling transactions, while consumer markets entails retailing transactions. Thus, in b2b, the amount of goods bought by a business is usually larger than what is being bought by an individual in the consumer markets. The transactions in b2b markets are much more bigger than the transactions in consumer markets in terms of monetary value.
Answer:
$ 600 per unit
Explanation:
Given:
selling price in the market = $ 600 per unit
From the given question it can be concluded that the firm is selling produce in the perfectly competitive market.
Now,
In the perfectly competitive market the marginal revenue is the selling price of the product.
Therefore, for the given question
the marginal revenue per unit = selling price = $ 600 per unit