# Can anyone solved

1. Sep 10, 2007

### puertocolon

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. Sep 10, 2007

### EnumaElish

Can you show growth rate of income = s/v?

3. Sep 10, 2007

### puertocolon

Can you help

No i cannot

4. Sep 10, 2007

### EnumaElish

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?

5. Sep 10, 2007

### puertocolon

Starting to can explained to me in detail if possible? Then perhaps we can put it in Algebraic correct form?

6. Sep 10, 2007

### puertocolon

I meant to say Can YOU explain in detail >>>>> ( LOL )

7. Sep 10, 2007

### puertocolon

Also i need help solving change of C/ C = s/v i need to prove that

8. Sep 10, 2007

### EnumaElish

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.

9. Sep 11, 2007

### puertocolon

Can you or anyone deirive it for me?

10. Sep 11, 2007

### EnumaElish

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