Annual real interest rate on the loans

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Reference no: EM139089

Q1. If the annual real interest rate on the loans is 6%, explain how many car companies will buy a new car assembly machine? Interest payments are made once a year.

Q2. A small open economy with a floating exchange rate is in recession with unbiased deal. If policy makers want to reach full employment while maintaining balanced trade, Illustrate combination of monetary and fiscal policy should they use?
Q3. From the e-Activity, evaluate the impact of globalization on domestic governance. Identify and explicate at least three significant factors requiring domestic changes.

Reference no: EM139089

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