Suppose that americans decide to increase their saving. if the elasticity of u. s. net capital outflow with respect to the real interest rate is very high, this increase in private saving will have a effect on u. s. domestic investment.

You are bearish on telecom and decide to sell short 100 shares at the current market price of $50 per share. a. how much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? b. how high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (input the amount as a positive value. round your answer to 2 decimal places.)