In a Steady-State Economy with a Saving Rate S, Population

question 35

Multiple Choice

In a steady-state economy with a saving rate s, population growth n, depreciation rate δ, and labour-augmenting technological progress g, the formula for the steady-state ratio of capital per effective worker (k*) , in terms of output per effective worker (f (k*) ) , is

• A)sf (k) / (δ + n + g).
• B)s / ((f (k))(δ + n + g)).
• C)f (k) / ((s)(δ + n + g)).
• D)(s - f (k)) / (δ + n + g).

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Definitions:

Cash Flow Per Share

The cash flow from operations divided by the number of common shares outstanding.

Statement Of Cash Flows

A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.

Bonds Payable

Long-term liabilities representing borrowed funds that a company is obligated to repay to bondholders at a specified maturity date.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, debt, and paying dividends.