The daily chart for the Dow shows how fast the stock market can decline when the 'inflating parabolic bubble' pops.
Answer:
Ok but where is the question?
Buy shares in a mutual fund. Mutual funds pool savings from many individual investors and then
invest in a diversified portfolio of securities. Each individual investor then owns a proportionate
share of the mutual fund's portfolio.
Explanation:
By comparing the opportunity cost of producing wine in the two countries, you can tell that Spain has a comparative advantage in the production of wine and Denmark has a comparative advantage in the production of rye.
Spain can gain from specialization and trade as long as it receives more than 5 of rye for each bottle of wine it exports to Denmark. Similarly, Denmark can gain from trade as long as it receives more than 1/10 of wine for each bushel of rye it exports to Spain.
The terms of trade (that is, price of wine in terms of rye) would allow both Denmark and Spain to gain from trade :
9 bushels of rye per bottle of wine
8 bushels of rye per bottle of wine
