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Are international capital flows a problem?
Problem: Capital flows can have an adverse outcome onto:
a. Balance of payments (BoP): Shortly term capital inflows can be like:
• Foreign direct investment
• Short term loans
b. Exchange rates: In the demonstrate figure opposite FDI by British investors into Belize sees an increase into the demand for the Belize dollar resulting within an appreciation of which currency
c. Domestic prices and competitiveness inflows lead to an appreciation of the currency creating imports cheaper and also exports dearer. Unemployment might follow.
What are the internal constraints on government action less developed countries? Internal Constraints on Government Action LDCs: • Have restricted domestic resources to ac
Mr. M enters into a contract with Mr. R under which R agrees to build a model railroad for $200. The value of the model railroad to M is $300. Expecting that the model railroad wil
QUESTION (a) Analyse the activist and non-activist policy makers' choice between implementing a policy rule or a discretionary monetary policy. (b) Explain why the policy ru
Draw a Supply or Demand Diagram A) Suppose that several months of data showed the CPI increasing at a 4.5% annual rate due largely to increases in the price of energy and food
Question 1 ‘The consumer is always king in the market place'. Critically examine this statement, highlighting the existence of market imperfections. Question 2 (a) Dis
with a water park going in town. What kind of externality is this?
I want a presentation on Saudi Arabia''s economic forecast for 2018 to 2020 and role and future of travel industry in it.
1. (classical monopoly pricing) A monopolist faces a demand curve q (p) = 100 p: (a) If its cost function is C (q) = 2q; what is the optimal level of price and quantity? (b
how does economic theory contribute to managerial decisions?
How is Gross Domestic Product capturing the economic dimension of human well-being? GDP (Gross Domestic Product) only captures the economic dimension of human well-being. All c
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