So each country has different currency, for example country A currency is 2 bills to our United States currency B which equals a dollar. So if we trade with country A we would get more for our dollar then country A would get less for their currency. The factor of inflation is a country that has consistently lower purchasing power like country A. This can cause higher interest rates for that country. Another influence is what they hold in a current account could be considered a deficit which means the country is spending more on foreign trade than it is receiving.
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there can be a net gain to society by allocating either more or less resources to producing X. D. resources are overallocated to the production of X. 9. The optimal point on a production possibilities curve is achieved where: A. the smallest physical amounts of inputs are used to produce each good. B. each good is produced at a level where marginal benefits equal marginal costs. C. large amounts of capital goods are produced relative to consumer goods.
A. slow-growers B. stalwarts C. countercyclicals D. A and B E. A and C The groups in this classification are slow-growers, stalwarts, fast-growers, cyclicals, turnarounds, and asset plays. Difficulty: Easy 41. Supply-side economists wishing to stimulate the economy are most likely to recommend A. a decrease in the money supply. B. a decrease in production output. C. an increase in the real interest rate D. a decrease in the tax rate.
Should the Government use Fiscal or Monetary Policy to Eliminate Canada’s Current Contractionary Gap? Introduction An economic recession is a period of slow economic activity; this contractionary phase is characterized by high unemployment and low levels of GDP. On the other hand, government bodies desire economic growth and low unemployment levels in order to attain a stable economy. These goals may be reached through the use of either fiscal policy or monetary policy. This paper will focus on and discuss which policy is more effective in eliminating the current recessionary gap of Canada.
Ahold can better spread his risk. b) ING has a high equity beta and a low asset beta. They had to have a lower asset beta because they can’t get customers if they have a big risk to fail. A bank has to be reliable. Vraag 4 a) Debt beta measures the sensitivity of the return on debt to the returns of the market.