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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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