Economics

/in /by

1.Consider the implications of capital mobility. Which of the following is the most likely effect of continued low US interest rates?

Inflows of foreign capital seeking the higher growth of the American economy.
Foreign governments will engage in competitive interest rate lowering.
US stock prices will increase.
Outflows of American capital seeking the higher returns available in other countries.

2. Evaluate the following statement: It is easier to build an economic model that accurately reflects events that have already occurred than to build an economic model to forecast future events. Do you think that this is true or not? Why? What does this imply about the difficulties of building good economic models?

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Economics

/in /by

1.Consider the implications of capital mobility. Which of the following is the most likely effect of continued low US interest rates?

Inflows of foreign capital seeking the higher growth of the American economy.
Foreign governments will engage in competitive interest rate lowering.
US stock prices will increase.
Outflows of American capital seeking the higher returns available in other countries.

2. Evaluate the following statement: It is easier to build an economic model that accurately reflects events that have already occurred than to build an economic model to forecast future events. Do you think that this is true or not? Why? What does this imply about the difficulties of building good economic models?

Click here to have a similar paper done for you by one of our writers within the set deadline at a discounted…

Needs help with similar assignment?

We are available 24x7 to deliver the best services and assignment ready within 3-4 hours? Order a custom-written, plagiarism-free paper

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