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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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