« previous next »

Author Question: Suppose that businesses in Japan reduce their spending on plant and equipment. What will be the ... (Read 107 times)

dmcintosh

  • Hero Member
  • *****
  • Posts: 517
on: Jun 30, 2018
Suppose that businesses in Japan reduce their spending on plant and equipment. What will be the effect on spending on plant and equipment by businesses in the United States?
 
  What will be an ideal response?

Question 2

In the DMP model, a decrease in matching efficiency
 
  A) has no effect on vacancies.
  B) reduces the unemployment rate.
  C) increases labor market tightness.
  D) increases the size of the labor force.


Swizqar

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 30, 2018
Answer to Question 1

Because Japan is a large open economy, the decrease in the demand for loanable funds in Japan will lower the world real interest rate. At a lower real interest rate, businesses in the United States will increase their spending on plant and equipment. Note that this answer ignores the potentially offsetting effect operating through the impact of lower spending on plant and equipment in Japan on Japanese national income and on Japanese demand for goods and services produced in the United States.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

dmcintosh

  • Hero Member
  • *****
  • Posts: 517
Reply #2 on: Jun 30, 2018
Thank you :)


Swizqar

  • Sr. Member
  • ****
  • Posts: 357
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Pathogen/plant interactions and the hypersensitive response to pathogen attack. Pathogen/plant interactions and the hypersensitive response to pathogen attack.
Alternation of generations, the plant life cycle Alternation of generations, the plant life cycle
Plant Cell Types (Part 1) Plant Cell Types (Part 1)
Plant Diagram Plant Diagram
A typical massage room has adequate space for equipment and pleasant decorations. A typical massage room has adequate space for equipment and pleasant decorations.
Video: Vasectomy

For a complete list of videos, visit our video library