Suppose the U.S. has an investment opportunity which costs $200 which will increase output from 100 to 110 per quarter. The investment would take effect after t = 0. What is the marginal product of capital (MPK)? What is the difference in the present value of future income in the U.S. of undertaking the investment if the real world interest rate is 8%? Should the U.S. borrow from abroad to fund the investment and why?

Give correct answer with short explanation

or An economy is currently at it's steady state. Their depreciation rate is 6% and their capital stock is 1,830. What will be their level of investment? Do not round until your final answer, when you may round to two decimal places. Country A produces GDP according to the following equation: GDP = 5√K and has a capital stock of 10,351. If the country devotes 11% of its GDP to producing or repairing investment goods, how much is this country currently investing? Rounds your answer to two decimal places.

Q2 2. The Daisy-land's economy is described as follows: Y=C+I+G; Y=10,000; G-2,000; T-3,000; C=2,000+0.5 (Y-T); I=3,000-150r. a. In this economy, compute private saving, public saving, and national saving. b. Find the equilibrium interest rate. c. Now suppose that G is increased by 1,000. Compute private saving, public saving, and national saving.

The saving rate (gross domestic saving as a % of GDP) in Singapore, a small open economy, was 48% in 2017 while the investment rate (domestic investment as a % of GDP) was 25%. As a result, there was net outflow of capital from Singapore in 2017.  Explain whether the given statement is true, false or uncertain. Start your answer by selecting one of the options – “True”, “False” or “Uncertain” and then provide arguments to justify your selection

oland is a small open economy. Suppose Poland's government decreases taxes on equipment, such as medical devices. Which statement below correctly describes the effect of this policy? This policy decreases Poland's real interest rate. This policy increases Poland's real interest rate. This policy may decrease or increase Poland's real interest rate. This policy has no impacts on Poland's real interest rate.

Given that a country will analyze the total benefit of its oil supply-demand in two periods of time by using the following data: Period I Deman curve: P = -0.2 Q₁ + 210 Suply curve: P = 0.04 Q₁ + 30 Interest rate : 10%, Oil reserve : 3.6 billion barrels of oil Units: P in USD, Q in million barrel Period II Deman curve: P = -0.2 Q₂ +210 Suply curve: P = 0.05 Q₂ + 30 Find the efficient allocation! (Q₁, Q₂, P₁, P₁, NB₁, NB₂, TNB), draw a graphical illustration!

Suppose the economy is in equilibrium, and assume no government or foreign sector. If total saving equals 41750, then intended investment must equal...

Which of the following is one of the reasons that the demand curve for loanable funds is downward sloping? A lower real interest rate discourages domestic investors from purchasing foreign securities and encourages foreign investors to purchase domestic securities. A higher real interest rate encourages people to save. OA lower real interest rate discourages people from saving. OA higher real interest rate makes borrowing more expensive, Which of the following is one of the reasons that the supply curve for loanable funds is upward sloping? A higher real interest rate makes borrowing less expensive. OA lower interest rate makes borrowing less expensive. OA lower real interest rate encourages domestic consumers to purchase foreign securities and discourages foreigners from purchasing domestic securities. A lower real interest rate makes saving less appealing.

Define Purchase of Investment.