Computer information technology and communications

Reference no: EM13692276

Major improvements in computer information technology and communications in the late 1990s fueled an increase in investment demand in the United States, which is a large open economy. What is the predicted impact of this increased investment demand in the United States on the U.S. interest rate, the U.S. exchange rate, and U.S. net exports, holding other factors constant? Illustrate your answer graphically and explain in words.

Reference no: EM13692276

Questions Cloud

Associated with a rightward shift in the demand curve : Explain why an increase in quantity demanded is not the same as an increase in demand. Which of these would be associated with a rightward shift in the demand curve?

Consider products that you use in your everyday life : Normal 0 false false false EN-US X-NONE X-NONE Consider products that you ..

A trade deficit means a net : A trade deficit for the United States is generally financed by: A trade deficit means a net:

Computer information technology and communications : Major improvements in computer information technology and communications in the late 1990s fueled an increase in investment demand in the United States, which is a large open economy.

Large country case-how large is the optimal tariff rate : Suppose country A is large enough to affect the world price of motorbike and therefore it faces an upward-sloping supply curve from the rest of world (ROW). The supply curve of the ROW is shown as follows:

Find the correlation coefficient between x and y : Find the correlation coefficient between X and Y. Provide an explanation for your answer to part 2

Assume a single macroeconomic model : The self-correcting mechanism would be expected to be very rapid in an economy with, Assume a single macroeconomic model. When inventories rise unexpectedly. Equilibrium GDP will not exist where outputs exceeds aggregate demand because businesses wil..

A firm has monthly production function : A firm has monthly production function Q (L, K) = L +( ?1+K), where L is worker hours per month and K is square feet of manufacturing space. The marginal rate of technical substitution is |MRTS|= 2 (?1+K)

User Account

All Pages