Solow growth model 20
19
18
18
1
Ideas: Work It Out 3 of 4
The diagram depicts the Solow growth model. We can
use this model to determine how the steady-state level of
capital stock and output respond to dillerent changes.
Consider these expressions for output (Y). investment (I).
and depreciation (D):
Y = K
I = 0.3K
D = 0.02 K
that
VI.
What are the new steady-state levels of capital stock (K$5)
and output (YS) if we increase the depreciation rate from
0.02 to 0.03?
to
sou
kss

Jen left a job paying $75,000 per year to start her own florist shop in a building she owns. the market value of the building is $120,000. she pays $35,000 per year for flowers and other supplies, and has a bank account that pays 5 percent interest. what is the economic cost of jen's business?

Stocks a, b, and c are similar in some respects: each has an expected return of 10% and a standard deviation of 25%. stocks a and b have returns that are independent of one another; i. e., their correlation coefficient, r, equals zero. stocks a and c have returns that are negatively correlated with one another; i. e., r is less than 0. portfolio ab is a portfolio with half of its money invested in stock a and half in stock b. portfolio ac is a portfolio with half of its money invested in stock a and half invested in stock c. which of the following statements is correct? a. portfolio ab has a standard deviation that is greater than 25%.b. portfolio ac has an expected return that is less than 10%.c. portfolio ac has a standard deviation that is less than 25%.d. portfolio ab has a standard deviation that is equal to 25%.e. portfolio ac has an expected return that is greater than 25%.

You want to have $80,000 in your savings account 11 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. if the account pays 6.30 percent interest, what amount must you deposit each year? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)