Why has it been politically challenging for governments to refocus efforts on new technology, education, and physical capital investment since the 2008-2009 recession? Select the correct answer below. They have focused on short-term recovery, but not enough on the long-term. O They have focused on long-term recovery, but not enough on the short-term O Efforts have instead been directed towards keeping the exchange rate constant. High income countries do not prioritize the development of new technology, education, or physical capital investments.

Why has it been politically challenging for governments to refocus efforts on new technology, education, and physical capital investment since the 2008-2009 recession? Select the correct answer below. They have focused on short-term recovery, but not enough on the long-term. O They have focused on long-term recovery, but not enough on the short-term O Efforts have instead been directed towards keeping the exchange rate constant. High income countries do not prioritize the development of new technology, education, or physical capital investments.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Consider a world with only two countries (i.e., two large open economies), the home country and the foreign country. Both countries have a zero current account balance initially. When answering the following questions, clearly label the lines and show the changes in the graph provided below. Give an intuitive explanation for the effects in each case. b-What are the effects on the world equilibrium interest rate, national saving, investment, and the current account balance in each country if home expected future marginal productivity of capital increases? c- What are the effects on the world equilibrium interest rate, national saving, investment, and the current account balance in each country if foreign country experiences a temporary adverse supply shock?
Can I get some help with this one?
1) Large current account deficits imply large financial account surpluses. True Or False?Explain. ww
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a) True or False? In Mankiw’s model of an open economy, the demand for loanable funds has two components: one is the need of domestic residents to borrow to purchase newly produced capital goods, and the second is their need to borrow to purchase foreign assets b) True or False? In Mankiw’s model of an open economy, the nominal exchange rate, e, is determined by the interaction of the supply of dollars and the demand for dollars in the market for foreign currency exchange. c) In an open economy, an increase in a country’s real interest rate will (discourage,encourage) domestic purchases of foreign assets and will (discourage, encourage) foreign purchases of domestic assets. Therefore, an increase in the real interest rate will (increase,reduce) net capital outflow. Answer these three sub-parts
How is the impact of contractionary monetary policy different in an open economy than in a closed economy? How is the impact of expansionary fiscal policy different in an open economy than in a closed economy?
Explain the impact of a sudden appreciation in a country's currency exchange rate on its export-oriented industries and overall economic growth.
Consider a small open economy that takes the world real interest rate as given. Suppose that initially the world real interest rate is less than the country’s autarky real interest rate. Now suppose there is a change in tax policy that leads to an increase in domestic investment demand. Which of the following is TRUE? a. The economy may flip from importing capital to exporting capital b. There is an increase in the quantity of domestic saving c. There is an increase in the real interest rate paid by domestic investors d. None of the other options
Explain why a developing country with a fixed exchange rate Explain why a developing country with a fixed exchange rate and foreign exchange controls in place (perfectly immobile capital) may find itself dependent on growth in exports, foreign investment, or foreign aid to attain economic growth. Explain why a developing country with a fixed exchange rate
If a country runs a deficit in its current account, it has to be financed by running a capital account surplus which is limited to borrowing from abroad. Select one: O True O False
For a small open economy, the domestic real interest rate (r) for a given country must be the same as the world real interest rate (r). only if capital is not perfectly mobile because with no barriers to capital flows, if the world rate > domestic rate the domestic residents would just lend abroad putting upward pressures on the domestic rate until both rates equal each other because with no barriers to capital flows, if the world rate < the domestic rate domestic residents would only lend to foreigners putting downward pressures on the domestic rate until both rates equal each other for none of these reasons for all of these reasons
a. Describe what is happening to the country’s capital account of the balance of payments prior to government changing its tack on supporting the value of the currency? Which items in the capital account are likely to change and how will they change? b. What is likely to happen to the country’s real exchange rate initially and after the government changes its policy stance with respect to supporting the currency? Please justify your answer. c. What happens to the current account balance right after the oil price shock and after the government stops supporting the currency? What items of the current account are likely to change and why? d. How is the market for non-tradables in the domestic economy affected in these two stages?