Category: business-economics

Order the answer to: In a world with two large open economies, what deter-mines

business-economics

Order the answer to: In a world with two large open economies, what deter-mines

Posted By George smith

Question
In a world with two large open economies, what deter-mines the world real interest rate? What relationship between the current accounts of the two countries is satisfied when the world real interest rate is at its equilibrium value?

Subject
business-economics
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Order the answer to: Generally, what types of factors will cause a small open

business-economics

Order the answer to: Generally, what types of factors will cause a small open

Posted By George smith

Question
Generally, what types of factors will cause a small open economy to run a large current account deficit and thus borrow abroad? More specifically, what two major factors contributed to heavy LDC borrowing in the 1970s?

Subject
business-economics


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Order the answer to: Explain why, in a small open economy, (a) national saving

business-economics

Order the answer to: Explain why, in a small open economy, (a) national saving

Posted By George smith

Question
Explain why, in a small open economy, (a) national saving does not have to equal investment, and (b) out-put does not have to equal absorption.

Subject
business-economics

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Order the answer to: How do a country’s current and capital account balances affect

business-economics

Order the answer to: How do a country’s current and capital account balances affect

Posted By George smith

Question
How do a country’s current and capital account balances affect its net foreign assets? If country A has greater net foreign assets per citizen than does country B, is country A necessarily better off than country B?

Subject
business-economics

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Order the answer to: A Canadian publisher sells $200 worth of books to a

business-economics

Order the answer to: A Canadian publisher sells $200 worth of books to a

Posted By George smith

Question
A Canadian publisher sells $200 worth of books to a resident of Brazil. By itself, this item is a credit item in the Canadian current account. Describe some off-setting transactions that could ensure that the Canadian current and capital account balances would

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Order the answer to: What are the twin deficits? What is the connection between

business-economics

Order the answer to: What are the twin deficits? What is the connection between

Posted By George smith

Question
What are the twin deficits? What is the connection between them?

Subject
business-economics

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Order the answer to: List the categories of credit items and debit items that

business-economics

Order the answer to: List the categories of credit items and debit items that

Posted By George smith

Question
List the categories of credit items and debit items that appear in a country’s current account. What is the current account balance? What is the relationship between the current account balance and net exports?

Subject
business-economics

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Order the answer to: A permanent increase in government purchases has a larger effect

business-economics

Order the answer to: A permanent increase in government purchases has a larger effect

Posted By George smith

Question
“A permanent increase in government purchases has a larger effect than a temporary increase of the same amount.” Use the saving-investment diagram to evaluate this statement, focusing on effects on consumption, investment, and the real interest rate for a fixed level of

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Order the answer to: Economists often argue that a temporary increase in government purchases,

business-economics

Order the answer to: Economists often argue that a temporary increase in government purchases,

Posted By George smith

Question
Economists often argue that a temporary increase in government purchases, say, for military purposes, will crowd out private investment. Use the saving-investment diagram to illustrate this point, explaining why the curve(s) shift. Does it matter whether the temporary increase in military spending

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Order the answer to: Analyze the following:
a. The effects of a temporary increase in

business-economics

Order the answer to: Analyze the following: a. The effects of a temporary increase in

Posted By George smith

Question
Analyze the following:
a. The effects of a temporary increase in the price of oil (a temporary adverse supply shock) on current output, employment, the real wage, national saving, investment, and the real interest rate. Because the supply shock is temporary,

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