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

Author Question: Use the saving and investment equation to explain why the United States experienced large current ... (Read 77 times)

Lisaclaire

  • Hero Member
  • *****
  • Posts: 569
on: Jun 29, 2018
Use the saving and investment equation to explain why the United States experienced large current account deficits in the late 1990s.
 
  What will be an ideal response?

Question 2

A firm in monopolistic competition maximizes its profit by ________.
 
  A. differentiating its good and producing the quantity at which price equals marginal revenue
  B. producing the quantity at which marginal revenue equals marginal cost and then adding a markup
  C. raising its price and producing so that it always has excess capacity
  D. producing the quantity at which marginal cost equals marginal reve-nue and charging the highest price at which it can sell that quantity


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

alexisweber49

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 29, 2018
Answer to Question 1

Investment in the United States was greater than saving in the late 1990s, so net foreign investment was negative. Net foreign investment equals net exports, which approximately equals the current account balance. Negative net foreign investment implies a current account deficit.

Answer to Question 2

D Figure 13.1 shows how a monopolistically competitive firm maximizes its profit.


Lisaclaire

  • Member
  • Posts: 569
Reply 2 on: Jun 29, 2018
Wow, this really help

tkempin

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Gracias!

« previous next »
 

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?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Meningocele. (a) A meningocele is a herniation of the meninges, usually associated with the spinal c Meningocele. (a) A meningocele is a herniation of the meninges, usually associated with the spinal c
Prevalence of Obesity in the United States Prevalence of Obesity in the United States
The United States, 1819 The United States, 1819
In 2008, Barack Obama was elected president of the United States, the first minority to achieve this ... In 2008, Barack Obama was elected president of the United States, the first minority to achieve this ...
An example of the sometimes drastic differences in placarding regulations in the United States ... An example of the sometimes drastic differences in placarding regulations in the United States ...
Small Avocado vs Large Avocado Small Avocado vs Large Avocado
Video: Introduction to Herpes

For a complete list of videos, visit our video library