How policy affect national saving and domestic investment

Assignment Help Microeconomics
Reference no: EM13184504

Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment.

(a) How does this policy affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rate, and the trade balance?

(b) Representatives of several large exporters oppose the policy. Why might this be the case?

Reference no: EM13184504

Previous Q& A

  Should hazy days invest in the new pool pump

Hazy Days Pool Park must replace its pool pump at a cost of $180,000. The pump has a useful life of 10 years with an $8,000 salvage value.

  State a simple monoprotic acid in this ph range

Uric acid dissociates as shown in the figure at the right with a pKa of 5.80, and can be treated as a simple monoprotic acid in this pH range.

  What would be your profit per bushel of rice

Explain how you could make a profit from this situation. What would be your profit per bushel of rice If other people exploit the same opportunity, what would happen to the price of rice in Japan and the price of rice of rice in the United States..

  State why are monochromators prism or grating monochromators

Why are monochromators (prism or grating monochromators) used in scanning instruments as opposed to absorption filters for

  Explain what was the concentration in the water sample

the instrument response S for each of the five solutions, measured with a colorimeter, was found to be 0.240, 0.437, 0.621, 0.809, and 1.009, respectively. What was the concentration of Fe3+ in the water sample?

  What amount should you bid to maximize the probability

Suppose we are interested in bidding on a piece of land and we know one other bidder is interested.1 The seller announced that the highest bid in excess of $10,000 will be accepted. Assume that the competitor's bid x is a random variable that is u..

  Ideal gas flows through a horizontal tube at steady state

An ideal gas flows through a horizontal tube at steady state. no heat is added and no shaft work is done.the cross sectional area of the tube changes with length and this causes the velocity to change

  What texts analysis of inflation-unemployment cycle suggest

As the economy slipped into recession in 1980 and 1981, the Fed was under enormous pressure to adopt an expansionary monetary policy. Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation-unemplo..

  Explain what is the mass in grams of acetone

what is the mass in grams of 17.55ml of acetone? and what is the volume in milliter of 7.26g of acetone?

  State the tube and concentrated nh3 solution

Suppose you have a glass tube which is 1 m long and 2.5 cm in diameter. Concentrated HCl acid is placed at one end of the tube and concentrated NH3 solution is placed at the other end.

Reviews

Write a Review

 

Similar Q& A

  Monopolistic competition and oligopoly

What does price, average revenue and marginal revenue have in common and Firms can operate in one or more markets and not always on the same side of the market. General Motors is a buyer in the resource market and a seller in the automotive market.

  Determining profit-maximizing price and quantity

The demand function for product sold by an oligopolist operating in the short run is given below: Compute the profit-maximizing price and quantity, if the firm operates in short run.

  Monopolistic competition-determining cost function

You're the manager of monopolistically competitive firm. The present demand curve you face is P=100-4Q. Your cost function is C(Q)=50+8.5Q2 (That's Q squared).

  Production possibilities frontier

What is the relationship between bowed out shape of production possibilities frontier and increasing opportunity cost of the good as more of it is produced?

  Compute calvin profit-maximizing output level

Compute  Calvin's profit-maximizing output level. Compute the Calvin's economic profits at this activity level. Is this activity level sustainable in long run?

  Why a government might want to regulate a monopolist

Explain why a government might want to regulate a monopolist and How can governments negate the adverse side-effects of gold-plating and cost padding?

  What happens in the market for oil

When war broke out in the Middle East, many markets were affected. Most of the worls's oil production takes place in this region and what happens in the market for oil; and (ii) what happens in the market for sports utility vehicles as a result of ..

  Determinant of demand for electronics in china

Prepare a report - The Report should including minimum the below points : Determinant of Demand for Electronics In China

  Development of value and distribution theories

A development of value and distribution theories. Detailed analysis of the reactions of consuming and producing units

  Build a simple supply and demand diagram

Listen carefully to the following video and summarize the main points that he is making and to what extent is it related to Adam Smith's invisible hand

  What type of fiscal policy would you recommend

The economy of the country of Upland is still recovering from a severe recession and still has an unemployment rate close to 9%. Assume that the government's only concern is to achieve full employment. 1. What type of fiscal policy would you rec..

  Cause of severe inflation in an economy

Briefly explain the calculation of The Unemployment Rate for the U.S. economy. How is the data collected to compute the Unemployment rate?What is the ultimate cause of severe inflation in an economy?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd