Show effect of inflow on the rental price of capital


During the 1980's and 1990's the United States experienced a significant inflow of capital from other countries. For example, Toyota, BMW, and other foreign car companies built auto plants in the United States. (A) Using a diagram of the U.S. capital market, show the effect of this inflow on the rental price of capital in the United States and on the quantity of capital in use.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Show effect of inflow on the rental price of capital
Reference No:- TGS064622

Expected delivery within 24 Hours