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Can anyone solved

  1. Sep 10, 2007 #1
    So this is the basic rules:
    Y=C+S
    S=sY
    s= S/Y= ΔS/ΔY
    , v= K/Y or Y= K/v
    I= ΔK


    From this show that:
    ΔC/C = s/v
    Y,S,C, I, K represent income, consumption, savings, caiptal stock and investment. with s and v as multipliers. Im working off the harod-domar growth models which says that the growth rates of income, savings, investment are equal (s/v).

    So algebraically I must also show that consumption growth rate = s/v.



    Here's the proof for capital stock growth rate:
    ΔK/k= I/K= S/K= (S/Y)/(K/Y)= s/v
     
    Last edited: Sep 10, 2007
  2. jcsd
  3. Sep 10, 2007 #2

    EnumaElish

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    Can you show growth rate of income = s/v?
     
  4. Sep 10, 2007 #3
    Can you help

    No i cannot
     
  5. Sep 10, 2007 #4

    EnumaElish

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    Y= K/v implies ΔY/Y = ΔK/K = s/v. (ΔY/Y = ΔK/K - Δv/v; but Δv = 0 since v is a constant.) Does this help?
     
  6. Sep 10, 2007 #5
    Starting to can explained to me in detail if possible? Then perhaps we can put it in Algebraic correct form?
     
  7. Sep 10, 2007 #6
    I meant to say Can YOU explain in detail >>>>> ( LOL )
     
  8. Sep 10, 2007 #7
    Also i need help solving change of C/ C = s/v i need to prove that
     
  9. Sep 10, 2007 #8

    EnumaElish

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    You are given Y= K/v, where v is a constant. This implies ΔY= ΔK/v. Therefore vΔY= ΔK and vΔY/Y= ΔK/Y. Since Y = K/v, vΔY/Y= vΔK/K and the v's cancel out.

    You can use this method to derive ΔC/C.
     
  10. Sep 11, 2007 #9
    Can you or anyone deirive it for me?
     
  11. Sep 11, 2007 #10

    EnumaElish

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    I gave you the formula for ΔY/Y. How do you tie ΔC to ΔY?
     
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