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Countries A and B have the same rates of investment, population growth, and depreciation. They also have the same levels of income per capita. Country A has a higher rate of growth than does Country B. According to the Solow model, which country has higher investment in human capital?
Productivity often increase during economic expansions and decreasing during economic recessions. Can you think of reasons why?
Between problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound of money supply, a low saving rate, poor capital base, and a lack of foreign exchange.
When deciding how much of their income to save for retirement, should workers consider the real or the nominal interest rate that their savings will earn? Explain.
With reference to the simple closed economy income-expenditure model,suppose the aggregate consumption function is C = 100 +0.8(Y – T); taxes areT = 10 + 0.25Y; investment, I, is 300 and government expenditures, G, are 200.
a how would a regular lm curve be affected if the private sector demand for money balances increased following
What is the present value of this sum at an interest rate of8% also what happens to the present value if the rate falls to5%
Explain how your answers to Test Yourself Question 5 would differ if each of the assumptions changed. Specifically, what sorts of changes in the assumptions would weaken the effects of monetary policy?
Describe this mean that the area affected by the natural disaster has experienced economic growthIllustrate what are the seen effects and what are the unseen effects.
Several cities regulate the taxi industry by licensing cabs. These licenses are often called medallions because they are issued in the form of a metal shield that must be affixed to hood of the cab,
How is duration related to the interest elasticity of a fixed-income security? What is the relationship between duration and the price of the fixed-income security?
The BLS estimates that in 2002, the number of working-age adults was 211.9 million, labour force was 141.8 million, and the total number of employed was 135.1 million. Calculate the following:
If your worker stated that they would match your contributions up to 50 percent, and how much would you contribute.
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