What additional sources of risk come from international investments?
What will be an ideal response?
Exchange rate risk, and political risks such as regulation, discrimination, and expropriation
Economics
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Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K and N both rise by 20%, and A is unchanged, by how much does Y increase?
A) 5% B) 10% C) 15% D) 20%
Economics
Private investment fluctuates ________, which supports those economists who advocate policy ________
A) procyclically, rules B) procyclically, activism C) countercyclically, rules D) countercyclically, activism
Economics