Ramsey Model with Fiscal Policy. Consider a Ramsey economy that is on its balanced growth path. Suppose the government announces at time 0 that at some later time, time t₁, investment income will begin to be taxed at rate Tk. This tax will then be in place forever. Revenues from this tax will be rebated back to households as lump-sum transfer. (2a) Begin by describing and drawing the balanced growth before the policy an- nouncement. (20 points) (2b) Draw the phase diagram showing the dynamics of c and k from the an- nouncement till t₁. Interpret your answer. (20 points) (2c) Draw the phase diagram showing the dynamics of c and k after time t₁. Interpret your answer. (20 points) (2d) Can c change discontinuously at time t₁? Why or why not? (10 points) (2e) In light of your answers to parts (2b), (2c), and (2d), what must c do at time 0? (10 points) (2f) Analyse now the alternative policy where the government announces at time 0 that the tax on investment will be in place from time 0 till ₁ and then it will be set to zero forever after. (20 points)
Answers
The Ramsey model also known as Ramsey Cass Koopmans model or Ramsey growth model is a model, which have the difference with the Solow model on the basis of consumption, which leads to increase in the accumulation of wealth, and enhances savings.
(a) The balanced growth path before the policy announcement is characterized by constant capital per effective worker (k) and constant consumption per effective worker (c). This implies that both variables grow at a constant rate over time, and the economy experiences steady-state growth.
(b) The phase diagram from the announcement until time t₁ shows the dynamics of c and k. Initially, both variables are on the balanced growth path. When the tax on investment income is announced, it reduces the after-tax return on capital, leading to a decrease in investment. As a result, the capital stock per effective worker declines, causing a decrease in consumption. The phase diagram illustrates the movement away from the balanced growth path.
(c) After time t₁, the phase diagram shows the new dynamics of c and k. The tax on investment income leads to a permanent decrease in investment, which lowers the steady-state level of capital per effective worker. Consequently, consumption per effective worker also decreases permanently.
(d) Consumption cannot change discontinuously at time t₁. According to the Ramsey model, consumption is a smooth function of capital per effective worker. The introduction of the tax affects the long-run equilibrium level of capital, which, in turn, affects consumption. Since the adjustment process is continuous, there are no sudden jumps or discontinuities in consumption at time t₁.
(e) In light of the dynamics described in parts (2b) and (2c), consumption at time 0 must be adjusted to reflect the future decrease in consumption resulting from the tax on investment income. This means that consumption at time 0 should be lower than it would have been in the absence of the tax announcement, as households anticipate the future decline in consumption.
(f) Analyzing the alternative policy where the tax on investment is implemented immediately, the phase diagram would show a similar initial movement away from the balanced growth path as described in part (2b). However, once the tax is set to zero after time t₁, investment returns increase, leading to higher investment and a subsequent increase in the capital stock per effective worker. As a result, consumption per effective worker rises, potentially surpassing the initial balanced growth path.
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Related Questions
'गंध' शब्द में उपसर्ग एवं प्रत्यय जोड़कर चार शब्द बनाइए।
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Answer:
Sugandh...Durgandh
gandhak..
Reinvesting cash flow allows a firm produce additional products and generate additional sales.
O True
O False
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who is a good house builder in a bloxburg I need a house :(
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Answer:
I'm good
Explanation:
but I'm still working on my house :(
Judging is:
Select the best answer choice.
A.
One's openness and flexibility to new information
B.
Perceiving people
C.
Responding to what the world throws at an individual
D.
Imposing order on the outside world
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Data Management . Discuss the methods the organization uses to manage and process data (1), and then give one advantage and one disadvantage of these methods (1). (You can discuss any points that you learned in this course (chapter 3) and link it to your selected organization)
Answers
The methods that the organization uses to manage and process data vary depending on the type of data, its volume, and the required level of security.
Data management refers to the processes, policies, procedures, and tools that are used to manage the entire life cycle of data in an organization. There are different types of data management methods that organizations use to manage and process data. One of the data management methods that organizations use is a database management system.
Database management systems (DBMS) are computer software applications that interact with the user, other applications, and the database itself to capture and analyze data. DBMS allows data to be accessed by multiple users and applications at the same time. One advantage of using database management systems is that they can handle large volumes of data, which is a significant advantage for organizations that process a lot of data. However, one disadvantage of database management systems is that they can be expensive to implement, which makes them unsuitable for small organizations.
Another method that organizations use to manage and process data is data warehousing. A data warehouse is a central repository of data that is used by an organization for business intelligence purposes. The advantage of using data warehousing is that it provides a comprehensive view of an organization's data. However, the disadvantage of data warehousing is that it can be costly and time-consuming to implement.
In conclusion, organizations use various methods to manage and process data, including database management systems and data warehousing. The use of these methods has advantages and disadvantages. For instance, DBMS can handle large volumes of data, but they are costly to implement, while data warehousing provides a comprehensive view of an organization's data but is time-consuming and costly to implement.
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During which part of the Product Life Cycle would a company use a profit-oriented pricing strategy?
Answers
The lifespan of a product depicts how long it remains on the market, from the moment it is first introduced to consumers until it is phased out and taken off the shelves.
What is the maturity stage of the product life cycle?Sales declined during the mature period, a sign that the market has started to become saturated. During this phase of the product life cycle, the price also starts to become competitive. The profit margins become slimmer as a result.
In most life-cycle situations, profits normally reach their greatest level during the early growth stages, but sales often reach their peak during the mature stages.
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PLEASE HELPPPPP due by tomorrow pleaseeee
write a one-page report that details the individual’s job position, education, and career training, current job responsibilities, and what the person enjoys the most about the job position.
Answers
The job description contains sufficient information to describe major responsibilities and essential functions as they exist today. They provide the information necessary to classify the position, not the person; thus they are “incumbent neutral” and not based on any specific quality of an incumbent (such as knowledge, skills, abilities, performance, dedication, loyalty, years of service, or degree). The document should not include every detail of how and what work is performed so that it remains useful even when minor changes occur. Job descriptions can be written as a joint effort between supervisor and employee, but the supervisor must approve.
When applying the lower cost or market rule to the valuation of inventory, the allowance method is considered preferable to the direct method because
A. the allowance method reports a higher inventory net valuation for balance sheet purposes than the direct method
B. the allowance method reports the inventory loss or loss recover in a separate income statement account
C. the allowance method, unlike the direct method, reduces the value of inventory reported on the balance sheet
D. the allowance method reports smaller losses than the direct method
Answers
It should be noted that the allowances method is considered preferable because B. the allowance method reports the inventory loss or loss recover in a separate income statement account.
It should be noted that the most common approach when implementing the lower cost is to apply it to each individual item of inventory separately.
When applying the lower cost or market rule, the market value should not exceed the net realizable value. Also, the allowance method is more preferable than the direct method because it reports the inventory loss or loss recover in a separate income statement account.
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can a 14 year old work? where?
Answers
Answer:
Yes!!
Explanation:
They can work at Chick-Fil-A!!
They can be a babysitter
wash cars
and more!
Graphical information can be useful in
a.
Math only
c.
Science only
b.
Social Studies only
d.
All subjects
Answers
Answer:
d all subjects
Explanation:
think its right sorry if its wrong
The answer fam is..........D) All subjects
Discuss how scarcity of economic resources
leads to tradeoffs
Answers
Scarcity of economic resources requires individuals and societies to make tradeoffs by choosing between alternative uses of limited resources.
This scarcity necessitates making choices and tradeoffs. When resources are scarce, choosing to allocate them towards one particular use means sacrificing the opportunity to use them for alternative purposes.
For example, a government investing resources in building new infrastructure may have to reduce spending on healthcare or education. Individuals face tradeoffs as well, such as deciding between spending money on leisure activities or saving for the future.
These tradeoffs arise because resources are limited, and individuals and societies must make choices to allocate them in the most efficient and effective manner given their scarcity.
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John rates Peter an average worker, "excellent" on all his performance evaluations. The rest of staff suspects that Peter gets high ratings because he graduated from the same prestigious university and was a member of the same fraternity as John. If this were accurate, what rating error has the staff identified? Explain your answer
Answers
Answer:
Throughout the description section beneath, the overview including its circumstance given is outlined.
Explanation:
The ranking error here's another resemblance failure that causes the ranking individual to assume that perhaps the candidate becoming ranked is very close to him as well as her, scoring him or her highly. After that, the individual becoming assessed must be from a similar university and perhaps a representative of almost the same organization as that of the ranking guy, which, attributable to obvious similarities, enables the rater to think positively of the performance, and lead to organizational scores.Worth 100 Brainly points!!!
Question 9 of 10
Which of the following standards is required by the Fair Labor Standards Act?
A. Paying a minimum wage
B. Notifying employees of a plant closing
C. Verifying employment eligibility
D. Avoiding discrimination
Please help! thank u
Answers
Explanation:
The Fair Labor Standards Act's (FLSA) basic requirements are: Payment of the minimum wage
option A is correct mark me brainiest please
Answer:
payment of mimimum wage
Explanation:
differentiate between direct and commercial services
Answers
Answer:
Commercial Service means service to Customers engaged primarily in the sale of goods, while Direct services mean services that are typically provided by home and community-based care and institutionally-based care providers, for example, nursing care.
Explanation:
Wikipedia research
The main difference between direct and commercial services are direct services are direct provided are not included in another person. Commercial services are consumer engaged in buying and selling of the services.
What is services?
The term “services” refers to the form of intangible. The service is helping someone to pay for the money. The services that someone is willing to pay for as a reward for their efforts. The services are divided into three categories, such as business services, personal and societal services.
The main difference between of the direct services and commercial services are:
Direct services are based on person to person and do not include the medium of the people. The direct provider provided the services and directly paid.Commercial services are the basis for the buying and selling of industry and manufactured products such as lawyers, teachers, shuttles, and parking.Therefore, direct services are directly provided as consumer pay for willingly. Commercial services are main motive to buying and selling of services.
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Which mrc population is the easiest to action in order to improve a unit's deployability rates?
Answers
The Mrc Population Is the easiest to action in order to improve a unit's deployability rates is called NOT MAC2. Hence, the answer is NOT MARC2. Read below about Marc population.
What is a MARC2?MOSC domain-containing protein 2, mitochondrial is a protein that in humans is encoded by the MOSC2 gene. Mitochondrial amidoxime-reducing component 2 (MARC2) has a significant role in N-reductive activity and energy metabolism.
Therefore, the correct answer is as given above
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HELP I AM BEING TIMED!!!!!
Damell has an eye for detail and is good at drawing realistic pictures. His friend Riannon is very good with her
hands and at following directions to assemble materials. Considering Damell and Riannon's skills, how would they
best fit into careers in architecture and construction?
Damell is bemer fit for work in construction, while Riannon is better fit for work in architecture.
O Riannon is better fit for work in construction, while Damell is better fit for work in architecture.
Both Damell and Riannon would be more successful in architecture than in construction.
O Both Damell and Riannon would be more successful in construction than in architecture.
Answers
Answer: b
Explanation:
in these, the Damell and Riannon's skills, they best fit into careers in architecture and construction is Riannon's is better fit for work in construction, while Damell is better fit for work in architecture. The correct option is (B).
What do you mean by the architecture?Architecture, as opposed to construction-related abilities, is the art and technique of designing and building.
Architecture is a discipline that satisfies both functional and expressive needs, and as a result, it serves both utilitarian and aesthetic goals.
These two ends can be identified from one another but they cannot be separated, and the proportional importance accorded to each can differ significantly.
In accordance with the requirements of its various organizations, society determines the types of architecture, not architects. Society establishes the objectives, and the architect is tasked with figuring out how to get there.
Therefore, in these the Damell and Riannon's skills, they best fit into careers in architecture and construction is Riannon's is better fit for work in construction, while Damell is better fit for work in architecture.
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frederick taylor believed that more efficient workers should be paid higher wages than their lower-performing coworkers, a system referred to as the
Answers
Answer:
piece rate system
Explanation:
Piece-rate, or piecemeal pay, means that employees are paid by the unit when completing a particular task, for instance, bushels harvested, trees pruned, or acres mowed. In this case, a worker is compensated by individual output and not by an hourly rate.
money demand depends on 4 things. list them and tell me how an increase in each would affect money demand.
Answers
Money demand refers to the amount of money that individuals and institutions are willing to hold at a given time. There are four factors that affect money demand: income, price level, interest rates, and uncertainty.
An increase in income would lead to an increase in money demand, as individuals and institutions would have more money to spend and would require a greater amount of cash on hand.
An increase in the price level, or inflation, would also lead to an increase in money demand, as individuals would require more cash to purchase goods and services.
An increase in interest rates would decrease money demand, as individuals and institutions would have a greater incentive to save their money in interest-bearing accounts rather than holding cash.
Finally, an increase in uncertainty, such as during times of economic or political instability, would lead to an increase in money demand as individuals and institutions seek to hold more cash as a safety net.
Money demand depends on four main factors: income level, interest rates, price level, and expectation of future prices.
1. Income Level: As income increases, people tend to demand more money to purchase goods and services. Thus, an increase in income would lead to an increase in money demand.
2. Interest Rates: Higher interest rates encourage people to save money, as they receive higher returns on savings. So, an increase in interest rates would decrease money demand, as people prefer to save rather than hold cash.
3. Price Level: If the general price level in the economy rises, people require more money to buy goods and services. Consequently, an increase in the price level would increase money demand.
4. Expectation of Future Prices: If people expect prices to increase in the future, they may prefer holding more money now to cover anticipated expenses. Therefore, an increase in the expectation of future prices would increase money demand.
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6. Describe at least three things a bank would consider about you when deciding whether to give you a loan. (1-3 sentences. 3.0 points)
Answers
Explanation:
Your Credit History
Your Ability To Pay The Loan
Your Cash Flow History
Why does a company issue a stock dividend Show management's confidence that company is doing well To reduce the amount of stocks available to feel good about themselves
Answers
A company issues a stock dividend to show management's confidence that the company is doing well and not to reduce the amount of stocks available. Stock dividend refers to a type of corporate distribution that is in the form of shares of stocks instead of cash.
What is a stock dividend? A stock dividend is paid to shareholders as additional shares of stocks in proportion to the number of shares that a shareholder already owns. The percentage increase in the number of outstanding shares that the shareholder owns is proportional to the number of shares owned by the investor. The purpose of a stock dividend is to share a portion of the company's profits with the investors in the form of additional stocks. A stock dividend does not affect the value of the investor's position in the company. The value of the investor's position will decrease in the same proportion as the number of additional shares received.
How does issuing a stock dividend show management's confidence in the company? Issuing a stock dividend shows management's confidence in the company because it indicates that the company has a healthy balance sheet. A company that issues stock dividends is usually one that has excess cash reserves, and that can afford to distribute some of its profits to the shareholders as additional shares of stocks. In summary, a company issues a stock dividend to show management's confidence that the company is doing well and to share a portion of the company's profits with investors in the form of additional stocks.
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14. a return of premium that is paid out by mutual insurance companies at the end of the year as a result of either positive operating costs or other investment returns is also known as a:
Answers
The term you are looking for is "policyholder dividend." This refers to the return of premium that mutual insurance companies.
They may pay out to their policyholders at the end of the year, based on the company's positive operating costs or investment returns. This dividend is a way for mutual insurers to share their profits with their policyholders and incentivize them to continue doing business with the company.These dividends are distributed to policyholders as a reward for the company's financial performance and are typically associated with mutual insurance companies, where policyholders have an ownership interest in the company.
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Can you guys help me with this ethical case? I know how to do these generally but this one specifically confuses me. I need to know the following: The ethical issue, who the primary and secondary stakeholders are, the different courses of action and their impacts as well as what the best solution would be. Thanks :)
Answers
A combination of personal, moral, legal, and social norms of what is proper determine the ethics, which are a set of principles for thinking and acting.
Ethical Issues: What Do They Mean?When a particular action, course of action, or judgment runs afoul of a society's moral standards, an ethical problem arises. Since any of their actions could be questioned in terms of their ethicality, both individuals and corporations can be implicated in these disputes.
The three different categories of ethical problems are what?Utilitarian, Deontological, and Virtue concerns are the three primary subcategories of ethical problems. While deontological ethics emphasize the act itself, utilitarian ethics place more emphasis on the results of a choice. The character of the person acting is a key component of virtue ethics.
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A company can charge a price of 74 dollars per unit when they sell 430 units. If the price increases by 3 dollars then the number of units that they sell drops by 7 . The revenue function for this company is as follows: R(x)=(74+3x)(430−7x) where x is the number of additional units sold beyond 430 . Use the Product Rule to find the derivative of R(x) R′(x)=
Answers
The derivative of the revenue function R(x) is R'(x) = -42x + 772.
To find the derivative of the revenue function R(x) = (74 + 3x)(430 - 7x), we can apply the Product Rule.
The Product Rule states that if we have two functions u(x) and v(x), the derivative of their product is given by:
(d/dx)(u(x) * v(x)) = u'(x) * v(x) + u(x) * v'(x)
Let's differentiate the revenue function using the Product Rule:
R(x) = (74 + 3x)(430 - 7x)
Using the Product Rule:
R'(x) = (74 + 3x)'(430 - 7x) + (74 + 3x)(430 - 7x)'
Taking the derivatives of the individual terms:
(74 + 3x)' = 3
(430 - 7x)' = -7
Substituting these values back into the equation:
R'(x) = 3(430 - 7x) + (74 + 3x)(-7)
Expanding and simplifying:
R'(x) = 1290 - 21x - 518 - 21x
Combining like terms:
R'(x) = -42x + 772
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Select all that apply.
Common skills assessments administered during the employment interview process include:
none of the above
science
keyboarding
math
Answers
Answer:
Keyboarding and Math :)
Explanation:
How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
The housing market has collapsed. banks are becoming very restrictive in their lending practices. which action would the federal reserve take to encourage banks to increase lending to home buyers? increase federal funds rate. lower reserve requirements. sell government securities. raise the discount rate.
Answers
The real estate sector is in disarray. The Federal Reserve may take action to encourage banks by easing reserve requirements as they become considerably more strict in their lending rules.
What is meant by federal funds?Any money received directly from the federal government is considered a federal fund and is listed as such in the "Detail of Appropriations" section of the governor's budget. Any organization or department may use these monies however they see fit. The interest paid on a federal funds overnight loan between financial institutions is known as "federal funds," and it is used to refer to money that commercial banks and other financial institutions have on deposit with a regional Federal Reserve System.
How Does the Federal Funds Rate Work?The federal funds rate is the interest rate that banks charge one another when lending or borrowing excess reserves overnight. 8 According to the legislation, banks must maintain a minimum amount of reserves in relation to their deposits. This reserve requirement is stored at a Federal Reserve Bank.
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Answer:Lower Reserve Requirments
Explanation:i took the test
Explain the problem that can occur due to learning organization approach.
Answers
Answer:
Shshwhsjehsnebebebebbee
Identify the problem by analyzing the given scenario. An IT software company is losing market share because it fails to launch new products in a timely manner. Decisions are centralized at the top, and employees have little or no voice. One way to solve this problem is to use teams to eliminate ____ in the company.
Answers
Explanation:
to eliminate their best efforts in the company
Answer:
"bureaucratic barriers"
Explanation:
i got it right on plato
The anthropocentric job design approach places emphasis on:
a. engineering considerations.
b. union-management cooperation.
c. work-group and team skills.
d. good social support systems.
Answers
The anthropocentric job design approach places emphasis on good social support systems (option d).
The anthropocentric job design approach places emphasis on good social support systems. This approach focuses on the human aspect of work, prioritizing employees' needs, well-being, and satisfaction in the work environment. By doing so, it aims to create a positive and productive workplace that fosters employee engagement and motivation.
Good social support systems are an essential component of this approach, as they help employees to effectively cope with the demands of their job and maintain their overall well-being. These systems may include:
1. Communication channels: Providing open, transparent, and accessible channels of communication allows employees to voice their concerns, offer suggestions, and foster a sense of belonging within the organization.
2. Team collaboration: Encouraging teamwork and cooperation helps employees to build strong working relationships, which can result in improved job satisfaction and better work outcomes.
3. Supervisor support: Managers play a crucial role in fostering a supportive environment. Providing guidance, feedback, and resources enables employees to perform their tasks effectively and develop professionally.
4. Work-life balance: Implementing flexible work arrangements, such as remote work or flexible hours, can help employees manage their personal and professional responsibilities, reducing stress and improving well-being.
5. Employee assistance programs (EAPs): Providing access to mental health support, financial advice, or other services can help employees address any challenges they may face, promoting their well-being and job satisfaction.
In conclusion, the anthropocentric job design approach emphasizes good social support systems to create a work environment that values human needs, ultimately leading to higher employee satisfaction, increased productivity, and a more successful organization. The correct option is d) good social support systems.
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Do any of y’all got cash app , but heyyy thankz for all the help
