Ratio of international asset trade to gnp for home

Assignment Help Econometrics
Reference no: EM131139251

Return to the example in the text of the two countries that produce random amounts of kiwi fruit and can trade claims on that fruit. Suppose the two countries also produce raspberries that spoil if shipped between countries and therefore are non-tradable. How do you think this would affect the ratio of international asset trade to GNP for Home and Foreign?

Reference no: EM131139251

Questions Cloud

How did the u.s. real interest rate behave : Put together data on the U.S. real interest rate for 1970-1976, a period that includes the first OPEC oil shock. How did the U.S. real interest rate behave?
What do you think is the rationale for these regulations : Similarly, Fed reserve requirements are imposed on any loan from a U.S. bank's foreign branch to a U.S. resident, or on any asset purchase by the branch bank from its U.S. parent. What do you think is the rationale for these regulations?
Do you agree with swoboda''s interpretation : (This argument is made in The Euro-Dollar Market: An Interpretation, Princeton Essays in International Finance 64, International Finance Section, Department of Economics, Princeton University, February 1968.) Do you agree with Swoboda's interpreta..
Can you suggest a connection between these two developments : Over the 1980s, the share of U.S. banks in London banking activity declined. Can you suggest a connection between these two developments?
Ratio of international asset trade to gnp for home : How do you think this would affect the ratio of international asset trade to GNP for Home and Foreign?
Write assignment on international labor rights : Discuss whether or not workers are exploited in manufacturing of US imports. In your response consider whether they are better off in that type of job or an alternative.
Which year was seignior age revenue greater : Other things equal, in which year was seignior age revenue greater? (Assume that asset holders correctly anticipated the path of inflation.)
What if the crawling peg is not fully credible : How would the domestic nominal interest rate be related to the foreign nominal interest rate? What if the crawling peg is not fully credible?
Journalize the withdrawal of posada under each assumptions : Journalize the withdrawal of Posada under each of the following assumptions. If Lamar's ownership interest is 20% of total partnership capital, what were Terrell's cash investment and the bonus to the new partner?

Reviews

Write a Review

Econometrics Questions & Answers

  How much l and how much k should they use

Suppose that the w=1, r=4 and the production function is given by: Q = K1/3L2/3. This means that the marginal product of labor and marginal product of capital are given by: MPL=(2/3)(K/L)1/3 and MPK=(1/3)(L/K)2/3. If the firm wants to produce 32 unit..

  Why is not pareto efficient to have the economy produce

An economy is currently made up of a firm that produces bread, a firm that produces butter, and a consumer who consumes both bread and butter. Current production is 100 units of bread, 50 units of butter which the consumed by the consumer.

  How many robots should the firm rent

In what kind of market structure does the firm sell its output How can you tell b. In what kind of market structure does the firm rent robots? How can you tell c. Calculate the marginal product and the value of the marginal product for each additiona..

  Give a formula for the marginal rate of substitution of y

At any bundle (x,y), find a formula for the marginal utility of x (which we have called MUx) and a formula for the marginal utility of y(MUy) Frieda, a rational consumer can buy an x-commodity and a y-commodity. Her preferences over alternative

  How much will change equilibrium gdp if mpc is given

Suppose the government decreases spending by $20 billion. How much will this change equilibrium GDP if the MPC is 80 percent and the tax rate is 1/6 (16.6 percent)

  Show the marginal product of labor and the value of marginal

Labor is the only input used by a perfectly competive firm. It hires workers for $50 a day. The firm's production function is shown in the following Table. Each unit output sells for $10. a.) complete the table to show the marginal product oflabor ..

  If interest rate is 30% which profession should he choose

If the interest rate is 30% which profession should he choose?

  What is the mc of increasing production from 0 to 1

For ATC and AVC, plot the points on the integer: for example, the ATC of producing one tablecloth is 80, so you should start your ATC curve by placing a green triangle at the point (1, 80). For MC, plot the points between integers.

  Does the merger lead to higher or lower cournot equilibrium

Suppose that P = 400 - 20Q and that there are 3 firms, each with a marginal cost of 30. Suppose that firms 2 and 3 merge. The merger allows the combined firm to lower its marginal cost to 20. Does the merger lead to a higher or a lower cournot equ..

  Find average cost and average for total cost curves

1. Find average cost and average for each of these total cost curves: a. TC = 10 + 2Q, b. TC = 5 + 3Q, c. TC = 20 - Q + 2Q2, 2.A firm's marginal cost of production is at $5 per unit, and its fixed costs are $20. Draw its total, average, and average..

  Discuss the pros and cons of central banks setting policy

Why don't policymakers want to adopt rules for monetary policy?

  Find what level of q maximizes net benefits

Suppose the total benefit derived from a given decision, Q, is B(Q)=25Q-Q^2 and the corresponding total cost is C(Q) = 5 + Q^2, so that MB(Q) = 25 -2Q and MC(Q) = 2Q What is the total cost when Q=2 and when Q=10

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