Explain how does the capital-financial account differ

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a) How do we measure income inequality? What problems arise the more unequal a country's income distribution becomes? What policies do governments adopt to redistribute income and how do those policies help the country's economic growth?

(Very brief answers needed - like a simple one-page/300 word or less write-up).

b) How does the capital/financial account differ from the current account? Give examples of what is included in each. What do we mean by a "trade deficit" and how does it relate to the international supply and demand for a nation's currency?

Reference no: EM1358698

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