What will happen to domestic investment

Assignment Help Business Economics

Reference no: EM13996851

If national savings remain unchanged and net capital outflow falls, what will happen to domestic investment (I)?

A) investment will fall

B) investment will remain unchanged

C) uncertain

D) investments will rise

Reference no: EM13996851

Questions Cloud

Co-payments-deductibles and services covered : Which type of health insurance plan would you choose the PPO plan or the HMO plan? Why would you make this choice? What things are important to you when selecting a health insurance plan (i.e. monthly payroll deduction, co-payments, deductibles, serv..

Curve shifted-demand curve and supply curve : Indicate which curve shifted (demand curve, supply curve or both) and in which direction – for each of the following situations: *The price of furniture rises as the quantity bought and sold falls. *Apartment vacancy rates increase while average mont..

Suppose the economy is in long-run equilibrium : Suppose the economy is in long-run equilibrium when GDP declines by $50 billion. The government wants to increase its spending in order to stimulate the economy and avoid a recession. According to Keynesian theory, how much additional government spen..

Classical economists believe that the demand for money : Classical economists believe that the demand for money will decline if the _________ decreases, while Keynesian economists believe that the demand for money will decline if the _________ increases.

What will happen to domestic investment : If national savings remain unchanged and net capital outflow falls, what will happen to domestic investment (I)?

Based on the current state of the economy : Based on the current state of the economy, recommend whether the Federal Open Market Committee (FOMC) should rise, lower, or keep short-term interest rates (the federal funds rate) the same. Support your recommendations with your research findings.

Perfectly competitive firm : Pete’s Pie Shop is a perfectly competitive firm. If the total output of pies in Pete’s Pie Shop increases from 20 per hour to 30 per hour as he hires the second worker, then. Every time Pete makes another pie in his shop, he uses $1.20 worth of pastr..

What price did the student sell the gatorade for : A faculty member sells Gatorade at UNC Charlotte football games. He finds that if he raises his selling price by $1, he sells 5 less bottles each week. He turns over the operation to a Managerial Economics student for a week. What price did the stude..

What is the amount of money the local bank can lend : Meagan deposits $750 from her piggy bank into her checking account at Regions National Bank. The reserve requirement is 10% and the bank has no excess reserves. What is the immediate effect on the M1 measure of the money supply of her deposit? Explai..

User Account

All Pages