ppose that for a particular economy, there are only RM 5 billion worth of vestment projects that can yield expected real returns of 9.1% to 12%, ut none that can yield more than 12%. An additional RM 5 billion will yield kpected real returns of 6.1% to 9%, an additional RM 5 billion will yield kpected real returns of 3.1% to 6%, and an additional RM 5 billion will yield kpected real returns of 0% to 3%. If the real rate of interest is 6%, desired vestment spending will be: * our answer

12. Consider an economy without technological progress and population growth. The production function is given as Y = K²/³N\/3. Both the saving rate and the capital depreciation rate are assumed to be 0.1. Which of the following saving rate delivers the highest consumption per worker in the steady-state: (a) 1/3 (Ь) 1/2 (c) 2/3 (d) none of above is correct

A project that will provde annual cash flows of $2,350 for nine years costs $9,700 today. a. At a required return of 12 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 28 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. At what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) а. NPV b. NPV C. Discount rate %

2. C = 50 + .8YD = 50 + .8(Y – T) %3D | = 150 %3D G = 200 T = 200 a) Calculate AY if AG = 100 (assuming that G could change all by itself). b) Calculate AY if AT = 100 (assuming that T could change all by itself). c) Calculate AY for AG = AT = 100.