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The equation SP = I + CA - $9 = I + CA -(T - G) = I + CA + (G - T) tells us that to reduce a current account deficit, a country must increase its private saving, reduce domestic investment or cut its government budget deficit. Nowadays, some people recommend restrictions on imports from China (and other countries) to reduce the American current account deficit. How would higher U.S. barriers to imports affect its private saving, domestic investment and government deficit? Do you agree that import restrictions would necessarily reduce a U.S. current account deficit?
Trace the impact of a sale of government bonds by the Central bank on bond prices
Please explain how the answer was reached so I can learn/understand how to apply to this concept.
Illustrate what would be new equilibrium if re is an increase in autonomous import expenditure from 100 to 200 which result from an increase in currency exchange rate.
What are the 3 main determinants of economic growth? Do we have to give from both demand and supply side?
It is time to assess your proficiency on course learning outcome #4: Explain aggregate supply and aggregate demand.
Katherine advertises to sell cookies for $4 a dozen. She sells 50 dozen, and decides that she can charge more. She raises the price to $6 a dozen and sells 40 dozen. What is the elasticity of demand? Assuming that the elasticity of demand is constant..
Compare the general business environment in Kenya with that of the U.S. from the standpoint of a telecommunications company. safaricom case study
What is the difference between privacy and confidentiality? Provide an example of the difference. As a health care consumer
Assume the government purposely incurs a budget deficit that is financed by borrowing. As a result, interest rates rise and the amount of consumption spending declines.
Your company manufactures controllers used in the production of commercial air conditioning units. Your current price is $50 per controller. At that price the total quantity demanded is 4,000 spread over a large number of small customers. Would you r..
Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 5%, the growth rate of the velocity of money is 4% and that the real economic growth rate i..
Suppose you are selling t-shirts at your own t-shirt stand. What are the equilibrium price and quantity for t-shirts? If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $5 worth of damage to th..
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