Assume the u.s. economy begins in long-run equilibrium

Reference no: EM1333763

Short run effects of foreign investment

Suppose the U.S. economy begins in long-run equilibrium. Concerns about global climate change cause the government to significantly restrict the production of electricity form fossil fuels. Because of this change in policy, foreign investors lose confidence in the economy, and the dollar falls in foreign-exchange markets.

Draw a diagram to show the short-term effect of these events, and explain why these changes occur.

Reference no: EM1333763

Questions Cloud

Primary and secondary data for research : Using both primary and secondary data for research can be useful.

Determining bond amortization schedule : Compute the total bond interest expense over the bond's life. Prepare an effective interest amortizatoin table. Prepare the journal entries to record the first two interest payments.

Measures to resolve rate of pay for salespeople : Imagine that you manage human resources for a small business. You have recently prepared a report on the market rate of pay for salespeople and the company's owner says the market rate is too high.

Why microsoft traditional name resolution approaches : What are Microsoft traditional name resolution approaches? What are Microsoft recent name resolution approaches? What are the differences between them.

Assume the u.s. economy begins in long-run equilibrium : Assume the U.S. economy begins in long-run equilibrium. Concerns about global climate change cause the government to significantly restrict the production of electricity form fossil fuels.

Challenges of designing this job for efficiency : What measures can an employer take to design this job to make it efficient and What might be some drawbacks or challenges of designing this job for efficiency?

Appropriate to use focus groups : In what situations is it appropriate to use focus groups? Explain your answer.

Generation of accounting data in decision making : Financial statement analysis is a critical link between the generation of accounting data and the proper usage of the information in decision making.

Describing yield curve predictor : Discuss ways in which an investor can take advantage of the flat or inverted yield curve. Provide three current, specific real-world examples in your discussion.

User Account

All Pages