Give major source of capital in most countries is domestic

Assignment Help Macroeconomics
Reference no: EM13245922

For a developing country to grow, it needs capital. The major source of capital in most countries is domestic saving, but the goal of stimulating domestic saving usually is in conflict with government policies aimed at reducing inequality in the distribution of income. Comment on this trade-off between equity and growth. How would you go about resolving the issue if you were the president of a small, poor country?

Reference no: EM13245922

Questions Cloud

Suppose people freely choose to spend 40 percent of their : Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person's income to provide the same level of coverage as before. What can be said about deadweight loss in each case?
Explain why the buyers will spend less on cocaine : If the elasticity of demand for cocaine is -.2 and the Drug Enforcement Administration succeeds in reducing supply substantially, causing the street price of the drug to rise by 50%, buyers will spend less on cocaine.
What is the belief that laws are justified if they prevent : What is the belief that laws are justified if they prevent a person from harming him- or herself known as?
What is the electric potential at point a : two charges, q1 and q2 are present on a normal coordinate system ,point A is located at the orgin, q1 has a charge of 1.11 nC, what is the electric potential at point A
Give major source of capital in most countries is domestic : For a developing country to grow, it needs capital. The major source of capital in most countries is domestic saving, but the goal of stimulating domestic saving usually is in conflict with government policies aimed at reducing inequality
Calculate the angular speed of the door : A bullet of mass 10g and speed 500 m/s is fiered into a door and gets embeded exactly at the centre of the door, Calculate the angular speed of the door just after the bullet embeds into it
What type of fiscal policies would help move the economy : An economy is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap-inflationary or recessionary-will the economy face after the shock, and what type of fiscal policies would help move the e..
Calculate change in deadweight loss if us replaces tariff : Calculate the change in deadweight loss if the U.S. replaces a prohibitive tariff per unit on imported wine by an equal production subsidy per unit of wine sold by U.S. producers. [Note: P = price per unit; Qd = billions of units demanded; Qs = bi..
What is the ratio k/k0 of the new kinetic energy : A uniform disk of mass 7.00m and radius 7.00r can rotate freely about its fixed center like a merry-go-round, What is the ratio K/K0 of the new kinetic energy of the two-disk system to the system's initial kinetic energy

Reviews

Write a Review

Macroeconomics Questions & Answers

  What is the economic reasons behind cutting employees

We are in the midst of a slow growing economy in the aftermath of a severe recession. During the economic downturn many businesses laid off workers very quickly once they forecast their sales were dropping. What is the economic reasons behind cutt..

  Estimate the cost of the tution

Perry is a freshman, he estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $30000 this year. He expects these costs to rise about $1500 each year while he is in college.

  Elucidate how nominal gdp and real gdp would differ

If the price changes above occurred for all goods across the economy during the four year period, elucidate how nominal GDP and real GDP would differ.

  What is the opportunity cost

Alpha and Beta, two tiny islands off the east coast of Tricoli, produce pearls and pineapples. The production-possibilities schedules in the table below describe their potential output in tons per year. (a) What is the opportunity cost of pearls on..

  Discussion on us banking overseas

Describe how the topic you select relates to the growth of United State banking overseas. Include data how your topic contributes to interdependence among economies and financial markets, and to global financial stability.

  Calculating steady state level of population

Compute the steady state levels of population. How might we transition between these two steady states and growth during the Malthusian regime?

  Calculating profit maximizing price-output combination

In the US, steel production has remained constant since the 1970s at about 100 million tons per year. Large integrated companies, like United State Steel, remain important in the industry, but roughly 50%.

  What were main benefits fromt activities of goldsmith banker

An early goldsmith banker earned a profit (sometimes a large profit) simply by writing notes to certify that a person had deposited a certain amoumt of gold in his vault. By writing more notes than the amount of gold held

  Illustrate what is the equilibrium output of such knives.

What is the equilibrium output of such knives. Illustrate what is the equilibrium output of such knives.

  Economic growth ppf

Use the production possibilities frontier (PPF) to demonstrate economic growth.(Growth and the PPP)

  What can we derive from the fact in terms of crowdedness

The crowdedness of the city is fixed, and has no relationship to the distance from the central business district. In other words, as we go further and further from the central business district, the level of crowdedness of the apartments remain un..

  Expenditure functions between various levels government

The division of taxing also expenditure functions between various levels government.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd