Imagine that if you decide to build a factory for real investment in Home or in For- eign country. If the price of the capital good for Home and Foreign country equals to PH and PF respectively. And the (real) rate of return of the real investment for Home and Foreign country equals to rH and rF respectively. State a formula that describe the equilibrium situation.
Imagine that if you decide to build a factory for real investment in Home or in For- eign country. If the price of the capital good for Home and Foreign country equals to PH and PF respectively. And the (real) rate of return of the real investment for Home and Foreign country equals to rH and rF respectively. State a formula that describe the equilibrium situation.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter27: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
Problem 3CQ
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