Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Yes/no + why? a. Everything else constant we record the amount of output a certain number of machines produce in one hour. With 2 machines

Yes/no + why?

a. Everything else constant we record the amount of output a certain number of machines produce in one hour. With 2 machines we produce 10 bikes. With 3 machines we produce 18 bikes. With 4 machines we produce 24 bikes. The marginal product of capital is therefore increasing

b. In the Solow growth model having a higher savings rate means that the growth rate of the economy is higher in the steady state.

c. If an Asian private company wants to make a stable coin against the Dollar, it does not need to hold foreign exchange reserves as it is not a Central Bank

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Basic Econometrics

Authors: Damodar N. Gujrati, Dawn C. Porter

5th edition

73375772, 73375779, 978-0073375779

More Books

Students also viewed these Economics questions