Briefly explain what a change in any part of the national saving and investment identity points out.

Q: 2) The country of Albanystan (country A) forms a small open economy on its own. It has savings SA =…

A: Hi, according to our guidelines, we are allowed to answer only question with 3 sub-divisions in a…

Q: Please provide examples of what is an emerging economy and its definition?

A: An economy is a system of interrelated production and consumption exercises that eventually decide…

Q: By which capital market is basically affected?

A: Capital Market is basically affected by two important factors.

Q: .What are the factors influencing FDI? h.How important Research and Development in international…

A: In present scenario of democratic government it is very important for the company to look whether…

Q: Briefly explain and critically evaluate the role of public and private investment in Pakistan. Also…

A: In economics, investment is described as the value of stocks plus fixed capital assets that are…

Q: What do you understand by the term “closed economy”? For a closed economy show,  National savings =…

A: The different economies around the world tend to operate in different ways. The economies work with…

Q: Foreigners deposit more money in country A. Which of the following graphs correctly shows how the…

A: Explanation for question no. 1    The second graph correctly shows how the loanable funds market in…

Q: What are some potential negative impacts that IMF may have on a lesser developed country

A: IMF is an organization at the international level that promotes economic growth globally and…

Q: a. Identify a country that could be considered as having the most closed economy.  b. Discuss…

A: Answer: Given that:     a) Identify a country that could be considered as having the most closed…

Q: Assume that initially a country has a loanable funds supply curve of S₁. Now, imagine that interest…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: Change in the financial market of an economy will affect the global economy. Briefly discuss.

A: Financial market refers to the place where savers and investors interact with each other to exchange…

Q: The following figure shows the demand and supply curve for capital market. Find the price of…

A: In the above figure, Sk represents the capital-goods . The function starts at Pm, or the lowest…

Q: How will you differentiate an open economy from a closed economy? Explain with the help of an…

A: An open economy is one in which product commerce involves not only domestic elements but also…

Q: Find a quote below and illustrate the effect of these phenomena on the world market for loanable…

A: The loanable funds market refers to the market where borrowers and lenders come together to exchange…

Q: Briefly explain the circular flow of income in an economy. How does circular flow of income…

A: The Circular Income or Circular Flow is a model of the economy in which major transactions are…

Q: What are the two economic crisis that challenged a country in Asian region. Briefly explain.

A: India faced an economic crisis in 1991. It's imports increased rapidly and government was in a…

Q: briefly discuss direct interventions of government for national saving?

A: In the context of economics, national savings is equal to a nation's income minus consumption and…

Q: What variable makes the relevance/link between loanable funds market and market for foreign-…

A: The loanable funds market (LFM) is the market where funds are supplied by individual savings for…

Q: Explain why, in a small open economy, national saving can be less than investment. Use a…

A: Answer: A small open economy, is an economy which is open for lending and borrowing internationally.…

Q: Define Capital market.

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: country's investment can be financed by ________. a. a government budget surplus b. national saving…

A: For the growth of a nation, investment is the key. Investment allows better and efficient…

Q: Consider the following data for country B, an open economy, for this year:   Y = $14 trillion…

A: Politicians and economists use a variety of approaches to evaluate a country's economic health. Some…

Q: In an open economy, it is impossible to have national saving equal to domestic investment. Answer…

A: National Savings:- The proportion of remaining money which is not eaten or expended by the…

Q: Clearly distinguish between each of the following terms: 4.4 A closed economy and an open economy

A: Meaning of Trade: The term trade refers to the situation under which the products and goods are…

Q: Discuss the advantages and disadvantages of investing in emerging economies

A: Investing in emerging economies refers to investing in countries that are in the process of…

Q: Last year a country purchased $1.5 trillion worth of goods and services from foreign countries, sold…

A: here we calculate the value of domestic investment by using the given data so the calculation is as…

Q: Classify capital market in India

A: In India, capital market is classified into 4 categories:

Q: Suppose the world consists of two countries, ABC and XYZ, only. The (autarky) equilibrium interest…

A: The loanable funds market would result in the equilibrium between the demand and the supply for the…

Q: What is the relationship between national saving and investment in a closed economy? Start by…

A: In economics, a closed economy refers to a theoretical model wherein there may be no global trade or…

Q: a. Identify a country that could be considered the most closed economy. b. Discuss THREE benefits…

A: Closed economy can be defined as the economy which do not participate in international exchange of…

Q: a. If the Japanese decided they no longer wanted to buy US assets, what would happen in the US…

A: Over the past decade, some of the Japanese savings have been used to finance US investment. That is,…

Q: Why is an open economy better than a closed one?

A: A closed economy is when all the produced goods and services are consumed by domestic households,…

Q: 5. “The result of the war that happened in Country A, it made Country A has negative public saving…

A: Aside from the obvious human cost, war has a number of economic ramifications for a nation. For the…

Q: Which of the following is TRUE of an open economy? O GDP = C+ I+G+X-IM O GDP = C+ I+G O GDP = T-…

A: Answer in step 2

Q: Suppose the world consists of two countries, ABC and XYZ, only. The (autarky) equilibrium interest…

A: When a nation has more of exports/outflows than it has imports/inflows, then the nation is in a…

Q: If the government reduces government purchases, then what happens to the real interest rate in a…

A: The fall in the government purchases will cause aggregate demand and output to fall. The fall in the…

Q: “Is FDI a Good Sign for any country to Raise its capital” Justify the statement. Discuss the Reasons…

A: FDI is foreign direct investment.It is good sign for a country to increase its capital. With…

Q: What is the difference between a closed and open economy. Define in a well manner.

A: A nation with an open economy is one that interacts economically with other nations through trade,…

Q: E3

A: An economic system is a way for societies or governments to organise and distribute available…

Q: The country of Cincinnatisland (country C) joins country B to form a large open economy, while…

A: f. At equilibrium level  Saving (S) = Investment (I) Given  SC = 50 + 200r  IA = 80 - 200r

Q: The majority of the countries have saving rates that are below the golden rule level. Why is it…

A: The per capita capital is the ratio of total capital to output. It means the rise in output results…