Answer:
since 
Explanation:
U(q₁ q₂)
Budget law can be given by
Lagrangian function can be given by
First order condition csn be given by
From eqn (i) and eqn (ii) we have
Putting 
in euqtion (iii) we have
since
Answer:
This action will result in her safe-guiding her investment portfolio in equities. For example, in a constant dollar plan, an investor keeps a constant dollar amount of the portfolio in equity securities.<em> If the equities' market value rises, the excess is transferred to fixed-income securities.</em>
Explanation:
Answer:
What is the growth rate of nominal GDP?
the inflation rate?
the real interest rate?
Explanation:
money supply × velocity of money = price level × real GDP = nominal GDP
since velocity of money is constant, any change in the money supply will result in an equal change in nominal GDP. Since the money supply grows by 8%, the nominal GDP also grows at 8%
growth rate of the money supply + growth rate of the velocity of money = inflation rate + real GDP growth rate
8% + 0 = inflation rate + 3%
inflation rate = 8% - 3% = 5%
real interest rate = nominal interest rate - inflation rate
real interest rate = 9% - 5% = 4%
Answer
Retained earnings at the beginning of Year 2 was: $1,450
Explanation
Revenue = $2,100
Retained Earnings Closing Balance = $1,850
Expenses = $1,150
Dividends = $550
Retained Earnings Closing Balance = Revenue - Expenses - Dividends + Retained Earning Beginning Balance
$1,850 = $2,100 - $1,150 - $550 + Retained Earning Beginning Balance
Retained Earning Beginning Balance = $1,450
Answer:
Gas Pumping Stattion
Explanation:
I think this is the answer.....
Hope this helps lmo
