Financial markets are not in equilibrium

Assignment Help Business Economics
Reference no: EM13853231

If interest rates differ between two countries, it is an indication that the financial markets are not in equilibrium, and that investment flows should be taking place between the two countries. Agree? Disagree? Explain.

Reference no: EM13853231

Questions Cloud

In situation of fixed exchange rate : In a situation of a fixed exchange rate, explain why, in the monetary approach, an excess supply of money leads to a balance-of-payments deficit. Why is the deficit only temporary? How might advocates of the monetary approach explain a long-lasting d..
Statistical discrepancy in balance-of-payment accounts : "Since the statistical discrepancy in the U.S. balance-of-payment accounts is so large, we cannot rely on the U.S. BOP statement to give information on the size of various 'balances' with any precision. Perhaps the U.S. BOP statement is essentially u..
Including the supply curve of domestic producers : Jacob Viner originally envisioned a situation where, in the demand/supply graph of a trade-diverting customs union, the demand curve was vertical and all supply curves (including the supply curve of domestic producers) were horizontal. In this situat..
Firm is only producer of high-tech sports utility vehicle : Suppose that your firm is the only producer of a high-tech sports utility vehicle for North American markets. Assume a constant marginal cost of $25,000 to produce each vehicle and no fixed costs of production.
Financial markets are not in equilibrium : If interest rates differ between two countries, it is an indication that the financial markets are not in equilibrium, and that investment flows should be taking place between the two countries. Agree? Disagree? Explain.
Regarding how historian should chronicle a plague : What common assumptions guide the Thucydides and Procopius readings regarding how a historian should chronicle a plague? What different assumptions do they possess about both human behavior and the role divine forces play in human history? How do bot..
Perfectly competitive industry : Find a purely/perfectly competitive industry. State why this industry is a purely competitive market. Give examples as to why. Please use the drop box to submit your extra credit assignment.
Relation between marginal and average costs : Describe the relation between marginal and average costs. Describe the relation between marginal and average fixed costs. Describe the relation between marginal and average variable costs.
Afford to spend for a geothermal heat pump : A geothermal heat pum can save up to 84% of the annual heating and cooling bills of a certain home in the norotheaster US. In this region, the yearly cost of conventionally heating and cooling a 2,000 square foot house is about $2,900. The maximum am..

Reviews

Write a Review

Business Economics Questions & Answers

  According to the rule for optimal input usage

According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company.

  Are the dual goals of economic development compatible

Are the dual goals of economic development and the reduction of population pressure on the envrionment compatible or conflicting objectives?

  Strategies for developing foreign markets

Outline the potential pros and cons of the three key strategies for developing foreign markets: exporting, licensing and franchising, and direct investment

  The great inflation affected the banking industry

The Great Inflation affected the banking industry through the following channel(s).

  Find out the equation price and quantity

demand for a good of an industry is given by the equation pq=100, where p is the price and q is quantity and supply is given by the equation 20+3p=q. find out  the equation price and quantity

  Estimates for proposed small public facility

Estimates for a proposed small public facility are as follows: Plan A has a first cost of $50,000, a life of 25 years, a $5,000 market value, and annual maintenance expenses of $1,200. Plan B has a first cost of $90,000, a life of 50 years, no market..

  Changes would affect bond price-quantities traded and yield

Consider a bond market. Show graphically and explain how each of the following changes would affect bond price, quantities traded and yield.

  Proposal to clean up a hazardous waste site

Assume you are part of a research team evaluating a proposal to clean up a hazardous waste site.

  Illustrate what is the equilibrium price of hotel rooms

Illustrate what is the equilibrium price and quantity of hotel rooms on Manhattan Island.

  Example of consistent fiscal policy and monetary policy

Give an example of consistent Fiscal Policy and Monetary Policy that you would choose to correct unemployment gap (Recession) that you suspect in the economy?

  Should the company produce control devices

A company produces two main products: electronic control devices and specialty microchips. The average total cost of producing a microchip is $300; the firm then sells the chips to other high-tech manufacturers for $550. Should the company produce co..

  Explain difference between nominal and real variables

Explain difference between nominal and real variables and give two examples of each. According to principle of monetary neutrality, which variables are affected by changes in quantity of money.

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