Answer:
The secondary market is the market in which securities are traded. This market no longer accumulates new financial resources for the issuer, but only reallocates resources among subsequent investors.
As a resale mechanism, it allows investors to freely buy and sell securities. In the absence of a secondary market or its weak organization, the subsequent resale of securities would be impossible or difficult, which would discourage investors from buying all or part of the securities. As a result, society would be left on the losing side, since many, especially the newest, undertakings would not receive the necessary financial support.
Question:
If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.
A) saving; increased
B) population growth; decreased
C) depreciation; decreased
D) total output growth; decreased
Answer
The correct answer is A) <u>Saving</u> rate of the economy must be i<u>ncreased</u> in order for the economy to reach the Golden Rule Level of the Capital Stock.
Explanation
Golden Rule Level of the Capital Stock is the level at which
MPK = δ,
Where MPK is Marginal Product; and δ the depreciation rate;
so that the marginal product of capital equals the depreciation rate.
In the Solow growth model, a <em>high saving rate results in a large steady-state capital stock and a high level of steady-state output.</em> A low saving rate results to a small steady state capital stock and a low level of steady-state output. Higher saving leads to faster economic growth only in the short run. An increase in the saving rate raises growth until the economy reaches the new steady state. That is, if the economy retains a high saving rate, it will also maintain a large capital stock and a high level of output, but it will not maintain a high rate of growth forever .
Answer:
1. Grace was credited for three months taxes.
Explanation:
We need to understand proration. The buyer needs to pay for the taxes the date the property is owed to him, and the seller needs to pay for the taxes till he is having the property. Now he has paid for a year, and the year ends on October 1st. However, he is going to owe the property until Jan 1st. And hence, Grace is credited with the 3 months taxes.
Answer:
Explanation:
The coach of a college men’s soccer team records the resting heart rates of the 27 team members. You should not trust a confidence interval for the mean resting heart rate of all male students at this college based on these data because;
(a) with only 27 observations, the margin of error will be large.
(b) heart rates may not have a Normal distribution.
(c) the members of the soccer team can’t be considered a random sample of all students.
Explanation:
This is an easy way for a manager to make an effective decision to carry out a capital budget project by analyzing a company's inflows and outflows from a period and determining what is the rate of resources and what are the aggregate risks for realization. investment that brings a positive return consistent with organizational objectives.
