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Illustrate the problem for UK economic performance
This is a foremost problem for UK economic performance and helps elucidate the persistent deficit on the current account of balance of payments. UK has been a net importer of goods for many decades and though the UK has a strong service sector, British households have become dependent on imported goods. The main problem facing the UK is large current account shortages which have been incurred since 2000 have been financed by borrowing from emerging-market nations specifically China. This is not a maintainable position. If China were suddenly to decide to sell its holdings of financial assets, denominated in sterling that it has accumulated because of financing the UK's imports from China, the £'s exchange rate would go into free-fall. Though this would make Britain's exports more price competitive in the short run at least UK inflation would rise dramatically, unemployment will grow and standards of living will fall.
Explain the pre-emptive monetary policy Since 1992 UK monetary policy has been 'pre-emptive'. In pre-emptive monetary policy authorities announce that they are prepared to rai
A passive deficit is the portion of the deficit that exists when: A. inflation is not fully anticipated. B. inflation is fully anticipated. C. the economy is at potential income. D
list and discuss the major markets and four agents in the circular flow economic?
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Climate and terrain in several South American countries are conducive to growing coffee efficiently. While other countries can grow coffee, they are not as efficient and effective
Describe the Structural unemployment Individuals who are unemployed as their skills are no longer in demand where they live. This kind mainly results in longer spells and may r
You have acquired a CT scanner at a cost of $750,000. You expect to perform 7,000 procedures per year over the estimated 5-year life of the scanner. Assuming no salvage value and a
x=40-0.2p where x=x1+x2 c1=50+2x1+0.5x1 c2=100+10x2
Q. Describe Nominal and real interest rates? To distinguish real interest rate from the ‘normal' interest rate, latter is termed as the nominal interest rate. Nominal interest
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