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Author Question: Explain why, according to Feldstein and Horioka, one should expect that domestic investment rates ... (Read 14 times)

Alygatorr01285

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on: Jun 30, 2018
Explain why, according to Feldstein and Horioka, one should expect that domestic investment rates diverge widely from saving rates.
 
  What will be an ideal response?

Question 2

How well has the international capital market perform?
 
  What will be an ideal response?


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Jsherida

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The decisions of corporations to invest and for households to save are different. Thus globalization means more and different ways to save and invest and increasing the differences between the two ratios.

Answer to Question 2

International portfolio diversification has increased.


Alygatorr01285

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

bassamabas

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Reply 3 on: Yesterday
Wow, this really help

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