How will the rise in interest rates affect FDI for the eurozone countries?

Q: What is the distinction that Marx draws between use value and exchange value?

A: In the words of Marx, use value can be described as how every product or commodity meets any social…

Q: What is Foreign Direct Investment (FDI) all about?

A: An investment is defined as asset which is acquired with the goal of earning income. This can be in…

Q: Given the following economic information for Country A (in RM billion):     Saving (S) = –500 +…

A: The IS-LM model, which stands for "investment-savings" (IS) and "liquidity preference-money supply"…

Q: State the sources of aggregate domestic savings.

A: Aggregate domestic savings are the difference between  GDP(Gross Domestic Product) and aggregate…

Q: Which of the following examples shows the most elastic demand?

A: Price elasticity of demand: Price elasticity of demand shows the effect on demand with the change in…

Q: What is the expected difference between interest rates in the United States and Japan? Are rates…

A: United State's interest rate is around 1.75% (Jan'2020)  Japan's interest rate is around -0.1%…

Q: Why is the IMF considered as being controversial?

A: International Monetary Fund (IMF) is an apex financial institution that works on a global level to…

Q: Define GCC. What were some of the reasons behind establishing the GCC?

A: On January 1, 2008, a common market was established with the goal of achieving a fully integrated…

Q: If government spending were increased, what would occur to interest rates

A: Government spending refers to the money spent by the government on things like health care,…

Q: By which capital market is basically affected?

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

Q: Which of the following is LIKELY to happen in a country if the interest rate increases? Lower cost…

A: Answer: Correct option: C (Appreciation of the domestic currency) Explanation: Due to the rise in…

Q: Currency crises and the demand for dollars: Suppose there is a currency crisisin the rest of the…

A: Exchange rate is the price of a currency of one country in terms of the currency of another country.…

Q: There is a euro zone recession. What part of US GDP is MOST impacted by a Eurozone recession?

A: The following problem has been answered as follows:

Q: how does distortion affects the financial and economic values of the tradable and non-tradable goods

A: Market distortion: It refers to the increase prices of the goods and services. It is basically the…

Q: Assess how South Africa’s FDI economy performed between 2010 and 2018 and effectiveness on the…

A: Foreign Direct Investment refers to the investment made by a company or individual in one country…

Q: Why is per-capita income NOT always the best indicator of an emerging market's potential? What does…

A: Managers frequently examine aggregate country data, like GNI or per-capita GDP, represented in terms…

Q: the following is a plausible effect of a rescue package offered by the IMF after a country gets hit…

A: There are various international organizations like the International Monetary Fund for the World…

Q: what is the relationship between money demand and GDP in developing countries

A: Compared to industrialized nations, developing countries have a gross domestic product (GDP) that is…

Q: p would be created on an AS-AD model if the US dollar became weaker against other currencies?

A: Trade refers to the exchange of goods, services, or resources between individuals, businesses, or…

Q: Outline any three reasons why countries borrow

A: Foreign commercial banks, international financial institutions such as the IMF, World Bank, and ADB,…

Q: Do the existence of SIFIs represent a threat to the economic stability of the country? Why or why…

A: A systemically important financial institution (SIFI) may be a bank, insurance, or alternative…

Q: Is our US Economy in Equilibrium? What recent events might cause you to indicate that it is or not?

A: Answer: Equilibrium in an economy refers to the situation where Aggregate demand is equal to the…

Q: Currency A weakened by 7.2% against currency B in 2020 compared to 2019. In this case: Currency B…

A: In the international market, the value of one currency is derived by comparing the currency with the…

Q: Consider the following equations for a small open economy for both the goods and money markets. C =…

A: C = 30 + 0.8Yd T = 10 + 0.2Y G = 100 TR = 10 I = 40 – 10r M = 20 + 0.14Y X = 20. LP = 10 + 0.15Y LT…

Q: What is Tesla Inc. in 2018 all about?

A: Introduction Elon Musk, Tesla's Chairman and CEO, tweeted on August 7, 2018, that he was…

Q: How do fluctuating exchange rates benefit MNCs and how do they affect them negatively? Give an…

A: exchange rates float unreservedly against each other, and that implies they are inconsistent…

Q: Draw a graph of disequilibrium analysis, where there is a shortage or excess demand and a hike in…

A: Equilibrium is achieved in the market where quantity demanded by consumer matches the quantity…

Q: How will growth impact the structure of the EuropeanCentral Bank’s (ECB) decision-making bodies?

A: The European Central Bank (ECB) is the euro zone for the central bank which is basically the group…

Q: What are the main criticisms toward IMF’s policies? Please list these criticisms and explain them in…

A: The International Monetary Fund (IMF) is an international financial organisation. It has its…

Q: Explain why coronavirus affects the balance of payments.

A: Balance of payments is a statement of all the financial transactions that occur between the…

Q: How to draw the graph of domestic growth rate of the money supply that contracts permanently?

A: The money supply is an authoritative action; it includes the total amount of currency and other…