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 9 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
Excellent

bigcheese9

  • Member
  • Posts: 333
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Wood and wood-like synthetics are classic and attractive forms of fencing for horses Wood and wood-like synthetics are classic and attractive forms of fencing for horses
As a result of this change, deoxyhemoglobin S As a result of this change, deoxyhemoglobin S
Ozone Depletion—A Global Issue Ozone Depletion—A Global Issue
European Culture in a Global Context European Culture in a Global Context
Global energy consumption is rising rapidly Global energy consumption is rising rapidly
Natural Capital versus GDP per Capita Natural Capital versus GDP per Capita
Video: Optic Nerve and Optic Disk Animation (Part 2 of 2)

For a complete list of videos, visit our video library