Instructions: Modify values in the SETTINGS window of the interactive tool to answer the questions below. After each question, click the "Reset" button in the upper-right corner. a) Increase the "Initial Value" setting for Country X. Which of the following describes the changes in the graph? OThe vertical intercept of the purple line rises. OThe vertical intercept of the green line rises. OThe green line starts at the same height but rises faster. OThe purple line starts at the same height but rises faster. b) Using the slider, change the "Growth Rate" setting for Country Y to 3%. Report the "Value in 10 Years" for country Y from the CALCULATIONS window. c) Experiment with the "Initial Value" for Country Y. What must that value be so that the two curves shown in the graph intersect at 20.0 years?
Instructions: Modify values in the SETTINGS window of the interactive tool to answer the questions below. After each question, click the "Reset" button in the upper-right corner. a) Increase the "Initial Value" setting for Country X. Which of the following describes the changes in the graph? OThe vertical intercept of the purple line rises. OThe vertical intercept of the green line rises. OThe green line starts at the same height but rises faster. OThe purple line starts at the same height but rises faster. b) Using the slider, change the "Growth Rate" setting for Country Y to 3%. Report the "Value in 10 Years" for country Y from the CALCULATIONS window. c) Experiment with the "Initial Value" for Country Y. What must that value be so that the two curves shown in the graph intersect at 20.0 years?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![GRAPH
SETTINGS
Reset
Country-X
Initial Value
($50 – $10,000)
1,000.00
Value (thousands of dollars)
[Country-X = Country-Y]
Growth Rate: 3%
10
9
0.1%
10.0%
8
Country-Y
7
Initial Value
6
($50 – $10,000)
2,000.00
4
Growth Rate: 1%
3
0.1%
10.0%
2
1
35.4 yrs.
E CALCULATIONS
5
10
15
20
25
30
35
40
Years
Value in
Country-X
Country-Y
10 years
$1,343.92
$2,209.24
20 years
$1,806.11
$2,440.38
30 years
$2,427.26
$2,695.70
Country-X
Country-Y
Instructions: Modify values in the SETTINGS window of the interactive tool to answer the questions below. After each question, click the "Reset" button
in the upper-right corner.
a) Increase the "Initial Value" setting for Country X. Which of the following describes the changes in the graph?
OThe vertical intercept of the purple line rises.
OThe vertical intercept of the green line rises.
OThe green line starts at the same height but rises faster.
OThe purple line starts at the same height but rises faster.
b) Using the slider, change the "Growth Rate" setting for Country Y to 3%. Report the "Value in 10 Years" for country Y from the CALCULATIONS
window.
c) Experiment with the "Initial Value" for Country Y. What must that value be so that the two curves shown in the graph intersect at 20.0 years?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a5ac3c6-e4ab-423a-91e1-ff33bdae0d07%2F8bc9ebe4-2dab-4b6c-b1d3-bbdaa59d30d6%2F48wcfal_processed.png&w=3840&q=75)
Transcribed Image Text:GRAPH
SETTINGS
Reset
Country-X
Initial Value
($50 – $10,000)
1,000.00
Value (thousands of dollars)
[Country-X = Country-Y]
Growth Rate: 3%
10
9
0.1%
10.0%
8
Country-Y
7
Initial Value
6
($50 – $10,000)
2,000.00
4
Growth Rate: 1%
3
0.1%
10.0%
2
1
35.4 yrs.
E CALCULATIONS
5
10
15
20
25
30
35
40
Years
Value in
Country-X
Country-Y
10 years
$1,343.92
$2,209.24
20 years
$1,806.11
$2,440.38
30 years
$2,427.26
$2,695.70
Country-X
Country-Y
Instructions: Modify values in the SETTINGS window of the interactive tool to answer the questions below. After each question, click the "Reset" button
in the upper-right corner.
a) Increase the "Initial Value" setting for Country X. Which of the following describes the changes in the graph?
OThe vertical intercept of the purple line rises.
OThe vertical intercept of the green line rises.
OThe green line starts at the same height but rises faster.
OThe purple line starts at the same height but rises faster.
b) Using the slider, change the "Growth Rate" setting for Country Y to 3%. Report the "Value in 10 Years" for country Y from the CALCULATIONS
window.
c) Experiment with the "Initial Value" for Country Y. What must that value be so that the two curves shown in the graph intersect at 20.0 years?
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