Although we stated that real assets comprise the true productive capacity of an economy, it is hard to conceive of a modern economy without well-developed financial markets and security types. How would the productive capacity of the U.S. economy be affected if there were no markets in which one could trade financial assets?

What is the expected difference between interest rates in the United States and Japan? Are rates going up, going down or staying flat?

Please answer ALL parts of the question, thank you! The chart below gives information about the country of Knutland. Answer the following questions assuming that Knutland has a closed economy. (a) Calculate private savings. Show your work. (b) Calculate public savings. Show your work. (c) Calculate national savings. Show your work. (d) Calculate investment spending. Show your work. (e) Assume that Knutland opens their economy and the capital inflows are $6 trillion and the capital outflows are $1 trillion. Calculate the total savings available to borrowers. Show your work. (f) Did the real interest rate in Knutland most likely increase, decrease, or stay the same when Knutland opened its economy? Explain.

When a U.S. domestic producer begins selling exports, they typically need to worry about the foreign exchange market, since often the revenues an exporter earns are foreign currencies that then need to be traded into dollars. Because the foreign exchange value of the dollar tends to fluctuate, this adds an additional level of risk to the exporter's business. What are some factors that would make a domestic producer willing to take on this extra and new type of risk?

Answer True, False or Uncertain. Briefly explain your answer In an international economy of perfectly substitutable currencies, an increase in the stock of one countryís money reduces real value of all monies.

Imagine a scenario in which there is a decreased consumer confidence in domestic financial systems. As a result, consumers have increased their savings in foreign financial institutions. What is the likely result of the supply loanable funds market? A)The supply of loanable funds will increase B)The supply of loanable funds will decrease C) Demand for loanable funds will decrease

Why are the growth rates of M1 and M2 so different

The newly-formed kingdom of Monkeytown is attempting to create their first currency. Many suggestions have been made, but the current favorite is to use bananas. Would bananas be a valid form of money? Why or why not? Would the residents of Monkeytown be able to use their bananas to make purchases in America? Why or why not? In your answer, please define any important economic terms used.

Angelika's company is based in Germany and sells its products all over the world. Currently, Angelika's company sells more products in Japan than ever before because the Yen has appreciated against the Euro, which means that Japanese consumers have more buying power. However, if the Yen depreciates against the Euro, their sales will drop unless they lower the prices on their products. *** Question | The situation Angelika's company faces illustrates which type of currency risk? A) translation exposure B) consolidation C) economic exposure D) transaction exposure E) hedging

I am not even sure how to begin this problem, graphing has never been my strong suit.