« previous next »

Author Question: An example of a leading variable in the US is A) GDP. B) investment is structures. C) the ... (Read 65 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?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

(A) The nine regions of the abdominopelvic cavity. (B) The four regions of the abdomen, which are re (A) The nine regions of the abdominopelvic cavity. (B) The four regions of the abdomen, which are re
Sickle cell anemia. The clinical manifestations of sickle cell anemia result from pathologic changes Sickle cell anemia. The clinical manifestations of sickle cell anemia result from pathologic changes
The major structures of the limbic system: amygdala, hippocampus, cingulate cortex, fornix, septum, ... The major structures of the limbic system: amygdala, hippocampus, cingulate cortex, fornix, septum, ...
The molecular structures of isooctane (left) and octane (right) dictate the differing chemical and ... The molecular structures of isooctane (left) and octane (right) dictate the differing chemical and ...
How to rearrange formulas to isolate for a variable (Part 2) How to rearrange formulas to isolate for a variable (Part 2)
Sagittal section of eye and its accessory structures Sagittal section of eye and its accessory structures
Video: What is Reverse Osmosis?

For a complete list of videos, visit our video library