In a Steady-State Economy with a Saving Rate S,population Growth $\delta$

question 70

Multiple Choice

In a steady-state economy with a saving rate s,population growth n,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 (denoting the depreciation rate by $\delta$
) :

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

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Definitions:

Borrowed Funds

Money that an entity borrows from another to finance its operations, investments, or other expenditures that must be repaid with interest.

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The interest rates reported by financial institutions, often related to loans or deposits, to regulatory bodies or in their financial statements.

LIBOR

The London Interbank Offered Rate is a standard interest rate used by leading international banks for loans to each other.

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The Federal Funds Rate is the interest rate at which depository institutions lend reserves maintained at the Federal Reserve to other depository institutions overnight.