National output in setting of flagging private investment

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Reference no: EM13986972

A. What is Say’s Law? How may it fail to hold in a monetary economy? B. Explain how deficit spending may increase national output in a setting of flagging private investment. How does the propensity of consumers to spend their income shape this effect? C. What are the three types of financial structure identified by Hyman Minsky? Which of these types would best explain the situation faced by somebody taking out an interest-only mortgage? D. What are the limitations and possible analytical problems with the theory of comparative advantage? E. “In order to industrialize and ‘catch up’ economically, developing countries should adhere to the same ‘free-trade’ principles upheld by Britain as it industrialized in the course of the nineteenth century.” Discuss.

Reference no: EM13986972

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