What constraints bear on the formation of economic policies

Reference no: EM131900025

Problem

1. Distinguish among external balance, internal balance, and overall balance.

2. What are the most important instruments of international economic policy?

3. What is meant by the terms expenditure changing policy and expenditure-switching policy? Give some examples of each.

4. What institutional constraints bear on the formation of economic policies?

5. Assume that a nation faces a BOP deficit with high unemployment. What exchange-rate adjustment can be made to resolve these problems? What if the nation experiences a BOP surplus with inflation?

Reference no: EM131900025

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