The saving rate.

Question

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Answer 1

Question

Chapter 8, Problem 1QQ

To determine

The saving rate.

Expert Solution & Answer

Answer to Problem 1QQ

Option (a) is the correct answer.

Explanation of Solution

Option (a):

The production function is given as y=20k12 . When the current capital stock is 100 and the depreciation rate is 10 percent and the population growth rate is 2 percent, the saving rate must exceed 6 percent for the income of the person to grow. Thus, option (a) is correct.

Option (b):

With the given production function, the income of the person grows when the saving rate exceeds 8 percent. However, this is not the minimum value for this condition. Thus, option (b) is incorrect.

Option (c):

With the given production function, the income of the person grows when the saving rate exceeds 10 percent. However, this is not the minimum value for this condition. Thus, option (c) is incorrect.

Option (d):

With the given production function, the income of the person grows when the saving rate exceeds 12 percent. However, this is not the minimum value for this condition. Thus option (d) is incorrect.

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Answer question 2 only.

1. A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate fund, and the third is a (riskless) T-bill money market fund that yields a rate of 8%. The probability distributions of the risky funds have the following characteristics: Standard Deviation (%) Expected return (%) Stock fund (Rs) 20 30 Bond fund (RB) 12 15 The correlation between the fund returns is .10.

Frederick Jones operates a sole proprietorship business in Trinidad and Tobago. His gross annual revenue in 2023 was $2,000,000. He wants to register for VAT, but he is unsure of what VAT entails, the requirements for registration and what he needs to do to ensure that he is fully compliant with VAT regulations. Make reference to the Vat Act of Trinidad and Tobago and explain to Mr. Jones what VAT entails, the requirements for registration and the requirements to be fully compliant with VAT regulations.

Answer 2

Question

Chapter 8, Problem 1QQ

To determine

The saving rate.

Expert Solution & Answer

Answer to Problem 1QQ

Option (a) is the correct answer.

Explanation of Solution

Option (a):

The production function is given as y=20k12 . When the current capital stock is 100 and the depreciation rate is 10 percent and the population growth rate is 2 percent, the saving rate must exceed 6 percent for the income of the person to grow. Thus, option (a) is correct.

Option (b):

With the given production function, the income of the person grows when the saving rate exceeds 8 percent. However, this is not the minimum value for this condition. Thus, option (b) is incorrect.

Option (c):

With the given production function, the income of the person grows when the saving rate exceeds 10 percent. However, this is not the minimum value for this condition. Thus, option (c) is incorrect.

Option (d):

With the given production function, the income of the person grows when the saving rate exceeds 12 percent. However, this is not the minimum value for this condition. Thus option (d) is incorrect.

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Answer 3

Question

Chapter 8, Problem 1QQ

To determine

The saving rate.

Expert Solution & Answer

Answer to Problem 1QQ

Option (a) is the correct answer.

Explanation of Solution

Option (a):

The production function is given as y=20k12 . When the current capital stock is 100 and the depreciation rate is 10 percent and the population growth rate is 2 percent, the saving rate must exceed 6 percent for the income of the person to grow. Thus, option (a) is correct.

Option (b):

With the given production function, the income of the person grows when the saving rate exceeds 8 percent. However, this is not the minimum value for this condition. Thus, option (b) is incorrect.

Option (c):

With the given production function, the income of the person grows when the saving rate exceeds 10 percent. However, this is not the minimum value for this condition. Thus, option (c) is incorrect.

Option (d):

With the given production function, the income of the person grows when the saving rate exceeds 12 percent. However, this is not the minimum value for this condition. Thus option (d) is incorrect.

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Answer 4

Question

Chapter 8, Problem 1QQ

To determine

The saving rate.

Expert Solution & Answer

Answer to Problem 1QQ

Option (a) is the correct answer.

Explanation of Solution

Option (a):

The production function is given as y=20k12 . When the current capital stock is 100 and the depreciation rate is 10 percent and the population growth rate is 2 percent, the saving rate must exceed 6 percent for the income of the person to grow. Thus, option (a) is correct.

Option (b):

With the given production function, the income of the person grows when the saving rate exceeds 8 percent. However, this is not the minimum value for this condition. Thus, option (b) is incorrect.

Option (c):

With the given production function, the income of the person grows when the saving rate exceeds 10 percent. However, this is not the minimum value for this condition. Thus, option (c) is incorrect.

Option (d):

With the given production function, the income of the person grows when the saving rate exceeds 12 percent. However, this is not the minimum value for this condition. Thus option (d) is incorrect.

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Answer 5

Chapter 8, Problem 1QQ

To determine

The saving rate.

Expert Solution & Answer

Answer to Problem 1QQ

Option (a) is the correct answer.

Explanation of Solution

Option (a):

The production function is given as y=20k12 . When the current capital stock is 100 and the depreciation rate is 10 percent and the population growth rate is 2 percent, the saving rate must exceed 6 percent for the income of the person to grow. Thus, option (a) is correct.

Option (b):

With the given production function, the income of the person grows when the saving rate exceeds 8 percent. However, this is not the minimum value for this condition. Thus, option (b) is incorrect.

Option (c):

With the given production function, the income of the person grows when the saving rate exceeds 10 percent. However, this is not the minimum value for this condition. Thus, option (c) is incorrect.

Option (d):

With the given production function, the income of the person grows when the saving rate exceeds 12 percent. However, this is not the minimum value for this condition. Thus option (d) is incorrect.

Answer 6

Chapter 8, Problem 1QQ

To determine

The saving rate.

Expert Solution & Answer

Answer to Problem 1QQ

Option (a) is the correct answer.

Explanation of Solution

Option (a):

The production function is given as y=20k12 . When the current capital stock is 100 and the depreciation rate is 10 percent and the population growth rate is 2 percent, the saving rate must exceed 6 percent for the income of the person to grow. Thus, option (a) is correct.

Option (b):

With the given production function, the income of the person grows when the saving rate exceeds 8 percent. However, this is not the minimum value for this condition. Thus, option (b) is incorrect.

Option (c):

With the given production function, the income of the person grows when the saving rate exceeds 10 percent. However, this is not the minimum value for this condition. Thus, option (c) is incorrect.

Option (d):

With the given production function, the income of the person grows when the saving rate exceeds 12 percent. However, this is not the minimum value for this condition. Thus option (d) is incorrect.

Answer 7

Chapter 8, Problem 1QQ

To determine

The saving rate.

Answer 8

Expert Solution & Answer

Answer to Problem 1QQ

Option (a) is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Option (a):

The production function is given as y=20k12 . When the current capital stock is 100 and the depreciation rate is 10 percent and the population growth rate is 2 percent, the saving rate must exceed 6 percent for the income of the person to grow. Thus, option (a) is correct.

Option (b):

With the given production function, the income of the person grows when the saving rate exceeds 8 percent. However, this is not the minimum value for this condition. Thus, option (b) is incorrect.

Option (c):

With the given production function, the income of the person grows when the saving rate exceeds 10 percent. However, this is not the minimum value for this condition. Thus, option (c) is incorrect.

Option (d):

With the given production function, the income of the person grows when the saving rate exceeds 12 percent. However, this is not the minimum value for this condition. Thus option (d) is incorrect.

Answer 12

Ch. 8 - Prob. 1QQ Ch. 8 - Prob. 2QQ Ch. 8 - Prob. 3QQ Ch. 8 - Prob. 4QQ Ch. 8 - Prob. 5QQ Ch. 8 - Prob. 6QQ Ch. 8 - Prob. 1QR Ch. 8 - Prob. 2QR Ch. 8 - Prob. 3QR Ch. 8 - Prob. 4QR

The saving rate.

The saving rate.

Answer to Problem 1QQ

Explanation of Solution

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Chapter 8 Solutions