Question: For situation II in section 12.5, the equivalent discrete model is yt+1 yt = 2.675 0.03375yt 0.1rt + 0.35St rt+1 rt

For situation II in section 12.5, the equivalent discrete model is yt+1 − yt = 2.675 − 0.03375yt − 0.1rt + 0.35St rt+1 − rt = −2.4 + 0.2yt − 0.4rt St+1 − St = −0.925 − 0.01yt + 0.05rt + 0.35St Given (y0,r0, S0)=(40.506, 14.253, 1.764) show that point E2 represented by (y∗,r∗, S∗)=(45.570, 16.785, 1.547) is not attained and that the system is explosive.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Labor Economic Questions!

A partial trial balance for the Ryman Corporation is presented in the table below. Ryman has recorded some, but not all, of its transactions for the current reporting period, the year ending December...

also see attached for more clear version A transaction involving a gain on the sale of equipment affects cash provided (used) by operating and financing activities. operating and investing...

Also see attached the paste option is messing up the format. 1. A transaction involving a gain on the sale of equipment affects cash provided (used) by i. operating and financing activities. ii....

GRASP: Goal Analyse the development and application of the microchip using very large and very small numbers. Role Microchip design analyst. Audience People in the class representing the people...

I need assistance with an assignment. I don't quite understand what to do. TAX 650 Milestone One Guidelines and Rubric In this short paper, you will compute the property disposition capital gain and...

I need help with my project for class. Attached is the overview for the entire project and the first milestone. Thank you For my client Bob I would recommend a Limited Liability Company or Sole...

I need your help with the second milestone of my project and really appreciated your help previously. I attached the overview for the project and the first part of the project. For my client Bob I...

For my project I need to pick a business entity. I know the business entity would be a sole proprietorship, I just need help with the wording as to why it would be a sole proprietorship using IRS tax...

Please give some ideas on : I. Memorandum, section A, F and G II. Memorandum, section A and B. TAX 650 Final Project Guidelines and Rubric Overview The final project for this course is the creation...

I need help with putting together the tax forms as describe in Milestone 4. I also attached the overview for the entire project and the everything up to this point written in the document labeled tax...

QUESTION 26 1. Given an array of elements 5, 7, 9, 1, 3, 10, 8, 4, build a binary max-heap, match answers with the questions. (5 points) Formula to find the height of the tree. Formula to find the...

Write a method to calculate and return the product of the values in an array. Declare an array of integer values that will represent the first five prime numbers: 2, 3, 5, 7, and 11. Initialize each...

One of the disadvantages of qtps is that owner / contributor shares control of the account with student

a. Financial statements should aid the user of the statements in making decisions. In your opinion, would the user of the statements be aided if there were a distinction between financial reporting...