Elasticity of us exports with respect to the real exchange

Reference no: EM1327139

Clarification of Elasticity

Suppose that Americans decide to increase their saving.

a.If the elasticity of U.S. net capital outflow with respect to the real interest rate is very high, will this increase in private saving have a large or small effect on U.S. domestic investment?

b. If the elasticity of U.S. exports with respect to the real exchange rate is very low, will this increase in private saving have a large or small effect on the U.S. real exchange rate?

Reference no: EM1327139

Questions Cloud

Modify a purchased software package : If the project team find out that the best alternative is to modify a purchased software package, then the team has several options to consider. What are they? What mus the project team take responsibility for in each case?

Explain how much will your companys total revenues : Explain how much will your company's total revenues revenues from both products change if you increase the price of good X by 1 percent.

Compare and contrast the useradd : Compare and contrast the useradd and adduser commands in Linux. What is their purpose? Which one would you use? What other processes besides using these two commands might you employ to accomplish the same task?

How the "right" database design can rarely be decided : The "right" database design can rarely be decided on the basis of normalization principle alone. Do you agree or disagree? explain.

Elasticity of us exports with respect to the real exchange : If the elasticity of US exports with respect to the real exchange rate is very low, will this increase in private saving have a large or small effect on the U.S. real exchange rate

What is the state of it systems development : What is the current state of IT systems development? How do systems development approaches affect business?

Expand or contract the number of phases : What is the Software/System Development Life Cycle (SDLC) and can we expand or contract the number of phases depending on the particular project?

Competitor cut their price also the industry sales declined : A major competitor cut their price also the industry sales declined to 8000 shoes per month, If the company wishes to restore

Draft the testing procedures to be used by groover : Draft the testing procedures to be used by Groover Consulting whenever they provide software to their clients. The procedures will be used by Groover Consulting to that the software they are delivering is reliable, accurate, and fault tolerant.

User Account

All Pages