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

Author Question: An increase in ________ in an open economy of any size leads to ________. A) desired saving; an ... (Read 87 times)

shenderson6

  • Hero Member
  • *****
  • Posts: 573
on: Jun 30, 2018
An increase in ________ in an open economy of any size leads to ________.
 
  A) desired saving; an increase in net capital outflows
  B) desired investment; a decrease in net capital outflows
  C) desired saving; an increase in the trade balance
  D) all of the above
  E) none of the above

Question 2

Why is residential investment procyclical?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mcni194

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

Cyclical fluctuations of income and expected income dominate the demand for housing. The user cost of housing is composed of procyclical elements  the real interest rate and the relative price of housing  which would counter the cyclicality of residential investment. But these cost determinants (as well as the procyclical cost of construction) are overwhelmed by expected changes in the relative price of housing. Residential investment is neither deterred by a boom nor revived during a slump. Rather, it thrives during a boom and languishes until the slump has passed.


shenderson6

  • Hero Member
  • *****
  • Posts: 573
Reply #2 on: Jun 30, 2018
Thank you


mcni194

  • Sr. Member
  • ****
  • Posts: 311
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

The Grants and natural selection of beak size among the medium ground finch. The Grants and natural selection of beak size among the medium ground finch.
Genetic drift and population size. Genetic drift and population size.
This chart illustrates the four quadrants in which we can place the relationships between the state This chart illustrates the four quadrants in which we can place the relationships between the state
Electrode placement for chest leads V1–V6. Electrode placement for chest leads V1–V6.
Leadership is not about size, it's about knowledge and wisdom Leadership is not about size, it's about knowledge and wisdom
Distribution Patterns and Population Size Estimates (Bio 30) Distribution Patterns and Population Size Estimates (Bio 30)
Video: Types of synapses - electrical & chemical

For a complete list of videos, visit our video library