Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

The equation of capital accumulation is K' = K + I - δK, where K is the capital stock at the beginning of the year, I is the investment made during the year, δ is the depreciation rate, and K' is the capital stock at the end of the year/beginning of the next year. (20pt)

a. IfK=100,δ=.1,andI=20,whatistheK'?

b. If K = 100, δ = .05, then for the capital stock at the end of the year of this economy to remain constant as the beginning of the year, how much investment is needed?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M948854

Have any Question? 


Related Questions in Microeconomics

Question describe the various ways that monetary policy has

Question: Describe the various ways that monetary policy has been used to stimulate growth in various developed economies since the global financial crisis. The response must be typed, single spaced, must be in times new ...

Question 1- how did the political reaction to government

Question: 1- How did the political reaction to government funding for the Solana project differ from the reaction to more conventional government spending projects such as roads and schools? What does the case tell us ab ...

Question identify a solution that the business community

Question: Identify a solution that the business community appears to favor for the current annual budget deficit in the US. For example, in the area of health care, the business community may prefer a policy that permits ...

Question an auto repair shop is considering purchasing

Question: An auto repair shop is considering purchasing automated paint-spraying equipment. The company estimates that the equipment will last five years. Each year, it will save the company $4,000 in paint wasted in the ...

The number has jumped 60 since last year when prices were

The number has jumped 60% since last year. When prices were falling, the number fell from 2,000 in 2015 to only 480 in 2016. For the week of March 10, 2017 the number was at 762. The elasticity of the supply is around 0. ...

Question qrs company pays its executives a higher annual

Question: QRS Company pays its executives a higher annual fixed base pay than TUV Company, but TUV makes a higher amount of its executives' compensation dependent on the performance of its stock. Assuming that their exec ...

Question the patient protection and affordable care act

Question: The Patient Protection and Affordable Care Act established a pilot program to expand the use payment bundling for better coordinated care for Medicare beneficiaries. What impact does payment bundling have on he ...

Question the initial price of a cup of coffee is 1 and at

Question: The initial price of a cup of coffee is $1, and at that price, 400 cups are demanded. If the price falls to $0.90, the quantity demanded will increase to 500. a) Calculate the (arc) price elasticity of demand f ...

Question in mid-2002 it was announced that one of the

Question: In mid-2002, it was announced that one of the leading bond funds managed by PIMCO now had more assets under management than the Fidelity Magellan Fund. Discuss the pros and cons of investors switching their ass ...

Question using two demand and supply diagrams one for the

Question: Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how a program that increased educational levels for a substantial number of low-skill work ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As