Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose that the desired capital stock is given as:
K* = 0.3Y/ir
Where Y = GDP, and ir is the real interest rate. Suppose further that Y = $5 trillion and that
ir = 0.12 (12 percent).
a. Calculate the desired capital stock, K*.
b. Now suppose that Y rises to $6 trillion. What is the corresponding (or new) desired capital stock?
c. Suppose that the actual capital stock (K) was equal to the desired capital stock (K*) before the increase in income from $5 trillion to $6 trillion. Assume that a gradual adjustment process of actual to desired capital occurs, such that λ = 0.4. What will the level of investment be in the first year after the change in income? What will investment be in the second year after the change in income?
Market questions come in two types: Type 1: you are given the exogenous variable change and you must shift the correct curve in the right direction and then determine the new pr
Note that it's changes in prices during 2008 that matter for the high real interest rate (time period when your deposit is earning interest). This means that you can never know how
effects of tax increase on the gross domestic product
On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th b
Evaluate the Bergson social welfare functions
THE MULTIPLIER ANALYSIS Multiplier analysis explains what happens to circular flow of economic life when the behavior of one of the sectors or the components of aggregate dema
intrepret national income statistic
What happens to the extraction path if the choke price falls
illustrate and discuss the implications of various market structures (competitive and non-competitive)for price determination.
Absolute income hypothesis
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd