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A) country A has investment rate (y) of 5% and country B has investment rate (y) of 20%. Additionally, both countries have an alpha of

A) country A has investment rate (y) of 5% and country B has investment rate (y) of 20%. Additionally, both countries have an alpha of 1/3. What is the steady state of A and B?

a. 1/4

b. 1/2

c. 1/5

d. 1/16

B) Given: alpha = 1/3, ni =0.8%, nj = 2.1%, = .05

calculate the ratio of the steady states of i and j. (Yiss/Yjss)

a. 1.24

b. 0.5

c. 0.08

d. 1.11

C) Given the function: F(K,L) = K1/3L1/2 and K = 8 L= 100. Compute MPK

a. 1/5

b. .83

c. .91

d. 1.5

please show work.

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