This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the capital accumulation equation used by Solow? What will be an ideal ... (Read 20 times)

burchfield96

  • Hero Member
  • *****
  • Posts: 610
on: Jun 30, 2018
What is the capital accumulation equation used by Solow?
 
  What will be an ideal response?

Question 2

The average propensity to consume (APC) is
 
  A) the rate at which real consumption spending changes over time.
  B) the percentage of real disposable income saved.
  C) the percentage of additional real disposable income that will go toward additional consumption spending.
  D) the percentage of real disposable income consumed.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

juliaf

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

According to Solow, the capital in the current year is equal to the capital of last year less the depreciated capital plus the level of investment. This implies:
Kcurrent year = Klast year - Kdepreciated + I
or, Kcurrent year = Klast year - (depreciation rate  Klast year) + I
or, Kcurrent year = (1 - depreciation rate)  Klast year + I

Answer to Question 2

D


burchfield96

  • Member
  • Posts: 610
Reply 2 on: Jun 30, 2018
:D TYSM

meow1234

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Otitis media. This illustration shows an inflamed tympanic cavity, which is the most common source o Otitis media. This illustration shows an inflamed tympanic cavity, which is the most common source o
The Number of Children Americans Think Are Ideal The Number of Children Americans Think Are Ideal
How to determine an equation in vertex form of a parabola How to determine an equation in vertex form of a parabola
How to fully analyze the standard and factored form of a quadratic equation (Question 2) How to fully analyze the standard and factored form of a quadratic equation (Question 2)
Algebraically solve the equation sec^2 θ-2=0 such that -π ≤ θ ≤ π Algebraically solve the equation sec^2 θ-2=0 such that -π ≤ θ ≤ π
Use the Henderson-Hasselbalch equation to perform the following calculations. Use the Henderson-Hasselbalch equation to perform the following calculations.
Video: Regulation of GFR: autoregulation via myogenic mechanism Myogenic mechanism

For a complete list of videos, visit our video library