Q6: If the Marginal Propensity to save (MPS) is the following function of income:1S'(Y)= 0.1– 0. 2 Y2,= 0. 1and if the aggregate saving S is nil when income Y is 70, find the Savingfunction S( Y).1Q7: Suppose that the net investment flow is described by the equation I(t) = 6t7,and that the initial capital stock, at time t= 0, is K(0). What is the time path of capitalК?1Q8: If I(t)= 3000t7 (thousands of dollars per year) -a nonconstant flow- whatwill be the capital formation during the time interval [1, 4], i. e. during the second,third, and fourth years?

[Since more than 1 question are posted, only 1st one is answered as per policy] (Question 6)…

Q6: If the Marginal Propensity to save (MPS) is the following function of income: S'(Y) = 0.1– 0. 2r, 0. 2 Y2, and if the aggregate saving S is nil when income Y is 70, find the Saving function S( Y).

Q6: If the Marginal Propensity to save (MPS) is the following function of income: S'(Y) = 0.1– 0. 2r, 0. 2 Y2, and if the aggregate saving S is nil when income Y is 70, find the Saving function S( Y).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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