Describe the economic logic behind the theory of purchasing

Assignment Help Macroeconomics
Reference no: EM13338261

1.Explain the relationship among savings, investment, and net capital outflow.

2.Describe the economic logic behind the theory of purchasing-power parity (PPP). What factors might prevent PPP from holding true?

Reference no: EM13338261

Questions Cloud

How does this deal impact the consumers opportunity set : A recent newspaper circular advertised the following special on tires: Buy three, get the fourth tire for free-limit one free tire per customer. If a consumer has $500 to spend on tires and other goods and each tire usually sells for $50
Select a well-known international political event : Select a well-known international political event that has impacted the United States foreign policy. For example, the 9/11 attacks on the U.S., Iraq, China, or Japan that would be good events for this and the following assignments. You will be using..
The quantity demanded will increase to : The initial price of cup of coffee is $1.00 and at that price, 400 cups are demanded. If the price falls to .90, the quanity demanded will increase to 500.
Recent tax reforms make college tuition partially tax deduct : Recent tax reforms make college tuition partially tax deductible for certain families. This should motivate more people to attend college. How will this higher demand for a college education affect tuition prices? how will it affect the cost of the t..
Describe the economic logic behind the theory of purchasing : Describe the economic logic behind the theory of purchasing-power parity (PPP). What factors might prevent PPP from holding true?
Show this on your projected production possibilities : How does your decision to invest in a college degree add to your capital stock? Show this on your projected production possibilities frontier for ten years from now compared to your production possibilities curve without a college degree
Cancer and the pesticide plant : Cancer and the Pesticide Plant
When gdp is high or increases does it indicate higher income : If so when GDP per capita increases why do saving ratios decrease when savings is income induced ie a rise in income increases savings and a decrease in income decreases savings?
How does the existence of money reduce the costs of making : How does the existence of money reduce the costs of making transactions ,relative to a society based entirely on barter?English is becoming the usual language for international transactions, even if the language of neither country is English.How does..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Calculate the optimal money growth rate needed for the fed

Suppose that a model of the economy suggests that the real interest rate is determined by the equation R= 8.5 - % ?Y Where Y is the level of output, so % Y is the growth rate of output. Suppose that people expect the Fed to hit its inflation target.

  What is the variable cost of producing 10 cars

Suppose the cost of producing q cars is given by c(q) = 7500 + 2000qa. What is the variable cost of producing 10 cars?b. What is the marginal cost of producing the 10th car?

  What is the actual real return on mortgages made prior to

The Federal Reserve unexpectedly increases the rate of growth of the money supply by 1%, and this change is expected to be permanent. What nominal interest rate will banks charge on new mortgages?

  Reason to conclude that the linear correlation coefficient

If a sample of size 18 has a linear correlation coefficient of -0.50, is there significant reason to conclude that the linear correlation coefficient of the population is negative? Use α=0.001.

  Explain okun law

Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?

  Students explore the reasons behind regulating banks

In the particular assignment due this week, students explore the reasons behind regulating banks also how that regulation relates.

  Predicted that consumption also gdp would increase

Economic forecasters predicted that consumption also GDP would increase because of higher refunds on income taxes.

  Elucidate the macroeconomic and microeconomic

Elucidate the macroeconomic and microeconomic concepts and how they relate to the management of a global organization.

  Explain how does the timing of lay-off and hiring decisions

Explain how does the timing of lay-off and hiring decisions made by firms explain the misleading characteristic of this indicator.

  Examine the effects of inward fdi on local productivity

Analyse and evaluate the argument presented in the article and the methodology used by the authors to examine the effects of inward FDI on local productivity. How far do their conclusions confirm or change any prior views you might have had based ..

  Calculation of multiplier and change in investment

In a closed economy without a government sector, consumption is determined as 80% of the income available to households.  Investment is autonomous at a level of £450.

  What are the effects on the exchange rate between the britis

Using demand and supply analysis to assistyou, what are the effects on the exchange rate between the Britishpound and the Japanese yen from: a decrease in Japaneseinterest rates. Please respond by statingwhich currency will appreciate and which one w..

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