n economy is said to be closed economy, when: a) Saving exactly equals investment at full emplor b) Imports exactly equal exports, so that trade is b- c) Domestic firms invest in industries overseas d) The home economy is isolated from foreign tra

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Q: 210. Capital intensive technique is chosen in a (a) Labour surplus economy. (b) Capital surplus…

A: According to the given questionIn simple words we can say that capital intensive technique in…

Q: Given a saving rate of 5%, a depreciation rate of 1%, and a production function in which y = k0.5…

A: Given: Saving rate (s)=5% Depreciation rate (δ)=1% Production function: y=k^0.5

Q: . Consider an economy in which the amount of investment is equal to the amount of saving (i.e., the…

A: The golden rule may be explained in terms of capital's marginal product of capital and depreciation.…

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A: A rise in interest rate will make domestic currency more attractive to investors. They will start…

Q: Consider an economy that is perfectly open to the world capital market. Suppose that the world…

A: y=3k1/2 rw=0.3 Marginal Product of Capital(MPK)=dy/dk MPK=3/2k-1/2 For optimal allocation, MPK=rw…

Q: A country has the per-worker production function: 2/3 Y, = 6k %3D where y, is output per worker and…

A: Per worker production function is yt = 6Kt2/3 yt  = Output per worker kt   = Capital-labor ratio…

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Q: The open-economy macroeconomic model includesa. only the market for loanable funds.b. only the…

A: Solution - We will evaluate the option - 1. Only the market for loanable funds -  It is the market…

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A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Assume that Mexico has a higher labor-to-capital ratio than the United States, leaving the United…

A: GIVEN DATA   Assume that Mexico has a higher labor-to-capital ratio than the United States, leaving…

Q: Consider an economy that is perfectly open to the world capital market. Suppose that the world…

A:

Q: Question 3 Consider two countries: St. Lucia and Barbados, labelled as L and B). In both countries…

A: We are going to solve for steady state expression to answer this question correctly.

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A: Equilibrium level of income Y= C+I+G+X-M

Q: 1. A country has the per-worker production function: Yt = 6k?3 where y, is output per worker and k,…

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A: In the intersection market, any change in the value of currency of a country will affect its…

Q: A country has the per-worker production function yt=6(kt)0.5, where yt is output per worker, and kt…

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Q: Assume prices are flexible, factors of production are fully employed in both countries and there is…

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A: When talking about the steady state of an economy, it is considered as the point with highest output…

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Q: Country A and country B both have the production function…

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Q: country's investment can be financed by ________. a. a government budget surplus b. national saving…

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Q: Which of the following is related to the disadvantage of foreign direct investment (FDI) on…

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Q: Then, _____ in the long run.

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A: Foreign direct investment is investment made by an individual or a company of a nation in the…

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A: (b)  Raising the attractiveness of imports as a method of controlling exchange rates.…

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A: The GDP level of the economy is given as, Y = C + I + G + X –M where, C = 160 + 0.6 Yd  T = 100 +…

Q: Both home and host countries intervene foreign direct investment . Discuss  2 reasons of why a home…

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Q: (Long Run) The country of Prosperous has: Production function: Y = 2K1/2 (AN)1/2 ; where…

A: We are going to derive the expressions for Y/AN and Y/N to answer these questions.

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Q: The Solow Growth Model assumes a closed economy. This implies   a.savings equals investment   b.…

A: The Solow–Swan model, also known as the exogenous growth model, is a long-run economic growth model.…

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