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 110 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?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Here are images of live zebrafish that were studied for genetics and head size to give insight into Here are images of live zebrafish that were studied for genetics and head size to give insight into
(A) Closed (or simple) fracture and (B) open (or compound) fracture. (A) Closed (or simple) fracture and (B) open (or compound) fracture.
Left coronary artery (only seen if auricle is open) Left coronary artery (only seen if auricle is open)
Forms of primary adult glaucoma: (a) in chronic open-angle glaucoma, the anterior chamber angle rema Forms of primary adult glaucoma: (a) in chronic open-angle glaucoma, the anterior chamber angle rema
Risks of infectious disease increase in (a) high-density agricultural populations compared to (b) lo Risks of infectious disease increase in (a) high-density agricultural populations compared to (b) lo
Effect of an Increase in R&D in the Follower Country on the Steady State Effect of an Increase in R&D in the Follower Country on the Steady State
Video: Mechanisms of capillary exchange (transcytosis & bulk flow)

For a complete list of videos, visit our video library