Elucidate the effect of this inflow on the rental price

Reference no: EM1336892

Effects of capital inflow

During the 1980s, 1990s, and the first decade of the 21st century, the United States experienced a significant inflow of capital from abroad. For example, Toyota, BMW, and other foreign car companies built auto plants in the United States.

a) Using a diagram of the US capital market, show the effect of this inflow on the rental price of capital in the United States and on the quantity of capital in use.

b) Using a diagram of the US labor market, show the effect of the capital inflow on the average wage paid to US workers.

Reference no: EM1336892

Questions Cloud

Suppose the fed does not change the money supply : Suppose the Fed does not change the money supply. According to the theory of liquidity preference, what happens to the interest rate? What happens to the aggregate demand.

Difference between llp and llc : The difference in liability and taxation of an LLP (Limited liability partnership) and an LLC (Limited liability company).

Define the eoq : Daily demand for packages of five videotapes at a warehouse store is found to be normally distributed with mean 50 and standard deviation 5. Discuss and define the EOQ.

Explain channel management decisions- text message filtering : Explain Channel Management Decisions- Text Message Filtering and Analyze the impact of channel management decisions on the marketing of your selected product or service

Elucidate the effect of this inflow on the rental price : Elucidate the effect of this inflow on the rental price of capital in the United States and on the quantity of capital in use.

Make the script to get it to back up to "x" number : Write down a shell script that would count the number of files in your account hat were last modified 5 or more days ago. When you run the shell script, the results should look something like.

Role-management in dissemination of information to employee : What is the management's role in the dissemination of information to employees?

Illustrate what role do the differences in teaching loads : At some of these schools, economics professors have lighter teaching loads than professors in some other fields. Illustrate what role do the differences in teaching loads play.

Cases of judicial activism : Take a position as a Judicial Activist. Argue for this position. Why is it better to have judicial activists in the Supreme Court? Is it a judge's role to create new law for social good?

User Account

All Pages