Consider an economy that is in steady state according to the Solow model. Now suppose that a temporary foreign aid program builds a new road between two major cities. This change will:

a. Increase capital per worker permanently, followed by temporary positive growth.
b. Increase capital per worker permanently, followed by temporary negative growth.
c. Increase capital per worker temporarily, followed by temporary positive growth
d. Increase capital per worker temporarily, followed by temporary negative growth

Schuepfer inc. bases its selling and administrative expense budget on budgeted unit sales. the sales budget shows 1,800 units are planned to be sold in march. the variable selling and administrative expense is $4.30 per unit. the budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. the remainder of the fixed selling and administrative expense represents current cash flows. the cash disbursements for selling and administrative expenses on the march selling and administrative expense budget should be: