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Vitek1552 [10]
1 year ago
11

A company is just getting started and needs new equipment but does not have a larhe amount of cash since the company business wi

ll also require frequent updating of the equipment it is better to the equipments
Business
1 answer:
arlik [135]1 year ago
7 0

Answer:

Lease

Explanation:

A company is just getting started and needs new equipment but does not have a large amount of cash since the company business will also require frequent updating of the equipment it is better to lease the equipment.

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If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the
Sphinxa [80]

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 .  

5 0
2 years ago
Distinguish between medium and higher level education with<br>illustration.​
Leviafan [203]

medium level profession can be defined as some one who has moved past entry level but isn't nearing the end . whereas high level profession means a person has moved past entry level and also has reached the end.

8 0
2 years ago
A sales firm regularly enrolls some of its employees in a six-month marketing course with a leading university. At the end of th
Firlakuza [10]

Answer:

Externship

Explanation:

Externship refers to an agreement between the employer and university wherein the university imparts skills required by the employer from employees which relate to a particular job designation.

Externship enables the employees to gain a short term practical knowledge which is related to their job position. Externship, unlike internship is for a shorter duration and during such a course the volunteered employees supervise the learning process of the externs.

Such a concept is also referred to as Job shadowing.

7 0
2 years ago
Malcolm consults his horoscope to determine what stocks to buy; miles studies the financial section of the paper and follows the
Alina [70]

Malcom has an external locus of control, aka he believes that things are influenced by forces outside of his control.

Miles has an internal locus of control and believes that he is responsible for influencing the outcomes of things in his life.

5 0
2 years ago
True or False: A small number of institutional investors are often able and motivated to bring direct shareholder pressure on a
Pani-rosa [81]

Answer: True

Explanation:

The agency problem is when there is a conflict of interest between the management of a company and the stockholders that exists in the company.

In order to help reduce the potential agency conflicts that at occur during the course of a business, a few of the institutional investors often bring in the pressure of the direct shareholder on the management of a firm. They believe by involving the shareholders, the management will try not to have any differences with the shareholders and thereby reducing agency problem.

3 0
2 years ago
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