Explain why, according to Feldstein and Horioka, one should expect that domestic investment rates diverge widely from saving rates
What will be an ideal response?
The decisions of corporations to invest and for households to save are different. Thus globalization means more and different ways to save and invest and increasing the differences between the two ratios.
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Which of the following statements is true?
A) The GDP per capita has almost been constant since the beginning of the 20th century in most of the western world. B) The average GDP per capita of a nation at a particular point of time is not the same as the income of all individuals in that nation. C) GDP per capita decreases with a decrease in population and increases with an increase in population, GDP remaining unchanged. D) GDP per capita is a useful to tool to study the disparities in standards of living in a country.
The holdout problem occurs when _____
a. unanimity rule is required for any Congressional action b. free riding is prevalent c. individuals drafted into the military refuse to report d. any individual has the power to prevent collective action
The correlation between an asset's real rate of return and its risk (as measured by its standard deviation) is usually
A) positive. B) strictly linear. C) flat. D) negative. E) chaotic.
Briefly and concisely define the following terms and explain their relevance to the study of economics
a. industrial and craft unions b. closed shop c. union shop d. bilateral monopoly e. collective-bargaining agreement