This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When an economy becomes attractive to global investors, sparking a capital inflow, one result is ... (Read 58 times)

kshipps

  • Hero Member
  • *****
  • Posts: 571
on: Jun 30, 2018
When an economy becomes attractive to global investors, sparking a capital inflow, one result is often a decrease in net exports. Why?
 
  What will be an ideal response?

Question 2

Applying neoclassical theory to the housing market, a higher marginal product of (housing) capital may be caused by ________.
 
  A) higher expected household income
  B) the inability to buy as much housing at a higher price
  C) an expected increase in the relative price of housing
  D) a decrease in the cost of building new houses


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aham8f

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 30, 2018
Answer to Question 1

The capital inflow reflects an increase in desired investment in the economy. With no change in desired saving, and total output fixed in the short run, the increase in investment spending must either displace exports or increase spending on imports, causing net exports to fall.

Answer to Question 2

A


kshipps

  • Member
  • Posts: 571
Reply 2 on: Jun 30, 2018
Gracias!

Dinolord

  • Member
  • Posts: 313
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Global positioning systems determine latitude, longitude, and altitude by measuring the distance fro Global positioning systems determine latitude, longitude, and altitude by measuring the distance fro
Average national IQs according to IQ and Global Inequality Average national IQs according to IQ and Global Inequality
Global Dimensions Global Dimensions
The rate of global emissions is rising rapidly, especially in India and China The rate of global emissions is rising rapidly, especially in India and China
The level of emissions from transport in the United States is twice as high as the global average The level of emissions from transport in the United States is twice as high as the global average
Land use change and forestry are responsible for 18% of global greenhouse gas emissions Land use change and forestry are responsible for 18% of global greenhouse gas emissions
Video: Bacteriophage (Virus) - Mice Experiment

For a complete list of videos, visit our video library