Question: In most cases a paragraph or so for each question will be sufficient. For problems, show your work such as calculator inputs and outputs for

In most cases a paragraph or so for each question will be sufficient. For problems, show your work such as calculator inputs and outputs for full credit.

How do we determine a firms cash flows? What are the equations, and where do we find the information?

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=+ b. What is the marginal product of capital in the initial steady state?

=+ a. What must the saving rate be in the initial steady state? [Hint: Use the steady-state relationship, sy = ( + n + g)k.]

=+ a. The capitaloutput ratio is constant.