Domestic investment and net capital outflow

Reference no: EM13698853

Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national saving increase? Show the relationship between China’s national savings, domestic investment and net capital outflow (NCO).

Reference no: EM13698853

Questions Cloud

What happens in the short-run if coustomers incomes increase : Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. Explain the following situations graphically a..

Variable cost arising from the physical inputs marcella : Marcella operates a small, but very successful art gallery. All but one of the following can be classified as a variable cost arising from the physical inputs Marcella required to operate her business.

How households will respond to changes in prices or incomes : Economic theory offers ______ about the full range of possible events and responses, which can prevent _______ about how households will respond to changes in prices or incomes.

Elasticity of demand for any particular brand to be high : There are many brands of laundry detergent, all equally effective. Would you expect the elasticity of demand for any particular brand to be high or low? Explain.

Domestic investment and net capital outflow : Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national saving increase? Show the relationship between China’s national savings, domestic invest..

What will the inflation rate be in the period of the cuts : You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. As well, assume t..

Consumer and business confidence and the economy : How can an event such as the terrorist attacks of September 2001 affect consumer and business confidence and the economy?

Efficiency of monopolistic and perfectly competitive markets : Compare the efficiency of monopolistic and perfectly competitive markets. Discuss the economic factors that lead to the development of monopolies. Examples of monopolies include electric utilities, railroads, airlines, cable television, and sports le..

Normalize the range such that the transformed range : Normalize the range such that the transformed range has a mean of 0 and a standard deviation of 1 - Partition them into three bins by each of the given methods.

User Account

All Pages