Answer:
A. (1 – s)y.
Explanation:
Solow growth model describes how saving, population growth, and technological change affect output over time and describes changes in the economy over time.
In the Solow growth model, where s is the saving rate, y is output per worker, and i is investment per worker, consumption per worker (c) equals:(1 – s)y
The answer is down sloping, perfectly elastic. The demand curve for a firm in a splendidly focused market shifts altogether from that of the whole market.The advertise request bend inclines to descend, while the impeccably aggressive Association's request bend is a flat line equivalent to the harmony cost of the whole market.
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Answer: b. the present value is halved
Explanation:
The present value of the investment is based on several things including the future payments. If these payments were to be halved from $150 to $75, the entire present value would be halved as well.
Present Value= 150 * (( 1 - (1 / 1.03) ) ^10) / 0.03
= $1,279.53
Present Value = 75 * (( 1 - (1 / 1.03) ) ^10) / 0.03
= $639.77
<em>Notice how the present value when the payments are $75 is half that of the present value at $150.</em>
