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 95 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?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

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
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
Does Intelligence Increase with Brain Size? Does Intelligence Increase with Brain Size?
To increase pressure using body weight, lean on your client. To increase pressure using body weight, lean on your client.
Effect of an Increase in Technological Progress Effect of an Increase in Technological Progress
Relative size ranges and fluorescent dye labeling colors of 16 STR Relative size ranges and fluorescent dye labeling colors of 16 STR
Video: Uterine (menstrual) cycle - phases

For a complete list of videos, visit our video library