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Is foreign debt a problem?
Foreign debt is the whole amount owed overseas through a country at an exact moment in time. Debt is a problem since
• High debt imply high interest payments
• The opportunity cost of interest payments is public services forgone.
• Loans are repaid within foreign currency which has to be earned during a surplus onto the current account balance.
Implications: Foreign debt good only when this is the result of financing investment in suitable productive capacity. Increasing output permits debt and interest to be repaid.
What is capital accumulation? Capital accumulation simply implies an increase into a country is stock or amount of capital over time. It requires net investment, which is inve
In the model with utilities W i = c i + α ln(x i ) where individuals are endowed with ability levels w p m R and form fractions π p , π m , π r with π m > π p , π r
Applying economic concepts to situations at work. This writing assignment is intended to give you a chance to apply concepts to real economic situations. Think of these concept
structure of the econamy
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Explain the ways in which businesses may try to influence government policy in a way that might benefit them. In the light of government regulation, businesses may become inv
helloo?
Why is the growth rate and significant for development? The rate of economic development is the percentage increase within real GDP over twelve months. • The higher rate of
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Assume the firms cost function is: C(Q)= 100+10Q+Q^2 , Determine whether this industry is a natural monopoly when the demand function is: 1) D(P)= 100-3P 2) D(P)= 90-3P 3) D(P)= 10
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