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how is the balance of payments linked to national saving and investment? explain.
Step by step
Solved in 2 steps
- What is more important, a country’s current account balance or GDP growth? Why?What are the trends regarding foreign direct investment (FDI) in the world economy?Why is per-capita income NOT always the best indicator of an emerging market's potential? What does the concept of purchasing power parity (PPP) suggest?
- why is the recovery of global economy, especially the Euro Zone, so important to the South African Economy.What is investment? How is it related to nationalsaving in a closed economy?Explain why, in a small open economy, national saving can be less than investment. Use a savings-investment graph to explain
- Explain the relationship between a current account deficit or surplus and the flow of funds.Why is the bilateral trade balance not necessarily a good measure of the trade relationship between two countries?How do wars and pandemics affect a country's nominal exchange rate, interest rate, and production?