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Choose a developing country and discuss its economic growth in the last 2-3 years. Include the following information:
•Identify its growth in output per capita and in population growth.
•Is it an open or closed economy?
•Identify its comparative advantage and whether it is involved in trade.
•Identify the country's type of economy-how its economy is a market, command, or mixed economy.
•Is the country's foreign exchange overvalued or undervalued? Has the central bank intervened in the foreign exchange market on behalf of the country's currency valuation?
•Using the information you gathered, discuss whether you believe the country is on a good course of economic growth and whether the macroeconomic policies are helping achieve this growth.
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Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..
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Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?
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