« previous next »

Author Question: An example of a leading variable in the US is A) GDP. B) investment is structures. C) the ... (Read 8 times)

skymedlock

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
An example of a leading variable in the US is
 
  A) GDP.
  B) investment is structures.
  C) the consumer price index.
  D) housing starts.

Question 2

In many economies, a substantial fraction of investment is by multinational corporations (MNCs) whose stock value is determined on global markets.
 
  Based on Tobin's q theory, how might we expect MNC investment to affect the volatility of aggregate investment in an economy?


briezy

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

If investment is sensitive to global market valuation, then it is less sensitive to economic conditions in a particular economy. The economy's business cycle should have lower amplitude, and investment should be less volatile. Unless the (global) market valuation of the MNCs is more volatile than the economy's aggregate investment, or happens to be closely correlated with the economy's business cycle.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Three-dimensional structures of proteins. Three-dimensional structures of proteins.
Lacrimal structures of the eye. Lacrimal structures of the eye.
Structures of class I, class II, and class III mobile genetic elements Structures of class I, class II, and class III mobile genetic elements
Structures and names of the nucleosides and nucleotides of RNA and DNA Structures and names of the nucleosides and nucleotides of RNA and DNA
T4 bacteriophage and phage structures T4 bacteriophage and phage structures
Separation of variable number tandem repeat (VNTR) alleles after PCR amplification Separation of variable number tandem repeat (VNTR) alleles after PCR amplification
Video: Non-specific disease resistance mechanisms & Skin's defense barriers

For a complete list of videos, visit our video library