With the aid of loan able funds market diagram

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a. When a leading developing country defaults on its loan to foreigners, discuss (with the aid of loan able funds market diagram) why interest rates will rise on bonds issued by many other developing countries.

b. Critically evaluate the use of GDP as a useful measure of economic welfare. Consider why it is useful or not, and indicate what factors other than GDP can be included in a measure of economic welfare.

c. If country A has a higher level of real GDP per person than country B, then people in Country A must enjoy a higher standard of economic welfare than people in Country B.’ Is this statement true or false? Explain your answer.

Reference no: EM13889313

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