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1. Suppose that an equation for investments and savings is described by an exponential function: Where I is the level of investments in an economy, S is the level of savings, Y is the gross domestic product, P is the total population, and ô and a are constants. a. Derive a linear (in parameters) equation from the exponential function with In In i as the left-hand side variable and s (saving rate) on the right-hand side. Note that i =- (investment per capita) and s = . d. Assume that In In 8 = 9.7 and ß = 0.05. Derive a specific linear equation on the relationship of i and s from the linear equation in (a). Interpret the slope coefficient. e. If the saving rate increase from 20% to 22%, estimate the percent change in infant mortality by: (i) using the elasticity in the equation in (b), and (ii) using the (midpoint) elasticity formula. (iii) Compare your results.

1. Suppose that an equation for investments and savings is described by an exponential function: Where I is the level of investments in an economy, S is the level of savings, Y is the gross domestic product, P is the total population, and ô and a are constants. a. Derive a linear (in parameters) equation from the exponential function with In In i as the left-hand side variable and s (saving rate) on the right-hand side. Note that i =- (investment per capita) and s = . d. Assume that In In 8 = 9.7 and ß = 0.05. Derive a specific linear equation on the relationship of i and s from the linear equation in (a). Interpret the slope coefficient. e. If the saving rate increase from 20% to 22%, estimate the percent change in infant mortality by: (i) using the elasticity in the equation in (b), and (ii) using the (midpoint) elasticity formula. (iii) Compare your results.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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1. Suppose that an equation for investments and savings is described by an exponential function: Where I is the level of investments in an economy, S is the level of savings, Y is the gross domestic product, P is the total population, and ô and a are constants. a. Derive a linear (in parameters) equation from the exponential function with In In i as the left-hand side variable and s (saving rate) on the right-hand side. Note that i == (investment per capita) and s = . d. Assume that In In 8 = 9.7 and ß = 0.05. Derive a specific linear equation on the relationship of i and s from the linear equation in (a). Interpret the slope coefficient. e. If the saving rate increase from 20% to 22%, estimate the percent change in infant mortality by: (i) using the elasticity in the equation in (b), and (ii) using the (midpoint) elasticity formula. (iii) Compare your results.
Transcribed Image Text:1. Suppose that an equation for investments and savings is described by an exponential function: Where I is the level of investments in an economy, S is the level of savings, Y is the gross domestic product, P is the total population, and ô and a are constants. a. Derive a linear (in parameters) equation from the exponential function with In In i as the left-hand side variable and s (saving rate) on the right-hand side. Note that i == (investment per capita) and s = . d. Assume that In In 8 = 9.7 and ß = 0.05. Derive a specific linear equation on the relationship of i and s from the linear equation in (a). Interpret the slope coefficient. e. If the saving rate increase from 20% to 22%, estimate the percent change in infant mortality by: (i) using the elasticity in the equation in (b), and (ii) using the (midpoint) elasticity formula. (iii) Compare your results.
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