1999 AP Macroeconomics Scoring Guidelines - AP Central
... Part (a) Given the inverse relationship between desired investment and the rate of interest, higher interest rates will reduce investment. With higher interest rates, firms will not undertake certain investment projects. Higher interest rates will attract capital from abroad into this country. The f ...
... Part (a) Given the inverse relationship between desired investment and the rate of interest, higher interest rates will reduce investment. With higher interest rates, firms will not undertake certain investment projects. Higher interest rates will attract capital from abroad into this country. The f ...
12 Myths of International Trade
... exports. Our imports provide foreigners with the dollars required to purchase our exports. Trade restrictions that reduce our imports will also reduce the dollar earnings of foreigners. As their dollar earnings fall, foreigners will have to cut back on their purchases from us. Trying to limit import ...
... exports. Our imports provide foreigners with the dollars required to purchase our exports. Trade restrictions that reduce our imports will also reduce the dollar earnings of foreigners. As their dollar earnings fall, foreigners will have to cut back on their purchases from us. Trying to limit import ...
A Basic Critique of Economic Arguments for Local
... Jayaraman and Oak consider is one in which the government takes over local production. The government polls consumers about their type. Then, “if demand revelations are at variance with the anticipated demand, any profits or losses incurred by the governmentproducer are passed on to consumers in the ...
... Jayaraman and Oak consider is one in which the government takes over local production. The government polls consumers about their type. Then, “if demand revelations are at variance with the anticipated demand, any profits or losses incurred by the governmentproducer are passed on to consumers in the ...
- SAS
... should not overshadow the original source of the rise in public deficits and debt in the late nineties. The main source was not mistaken but exogenously chosen expenditure and tax policy, but rather the compounded effects of inherent fragility of the external accounts and their vulnerability to the ...
... should not overshadow the original source of the rise in public deficits and debt in the late nineties. The main source was not mistaken but exogenously chosen expenditure and tax policy, but rather the compounded effects of inherent fragility of the external accounts and their vulnerability to the ...
Balance Sheets after the EMU - OFCE
... devaluation indeed does not change anything, because the accounting valuation does not depend on the exchange rate. But, on the asset side, investments being written at their market value, a devaluation increases the latter in terms of the domestic currency. As these positions could potentially be l ...
... devaluation indeed does not change anything, because the accounting valuation does not depend on the exchange rate. But, on the asset side, investments being written at their market value, a devaluation increases the latter in terms of the domestic currency. As these positions could potentially be l ...
Exchange-Rate-Stability-And-Export-Performance
... programme are normally based on educated guesses or on models which have been designed for other countries. The direction of this work will be to understand the cardinal reasons for the inability of Nigeria to maintain a favorable external reserve. What factors capture most the exchange rate instab ...
... programme are normally based on educated guesses or on models which have been designed for other countries. The direction of this work will be to understand the cardinal reasons for the inability of Nigeria to maintain a favorable external reserve. What factors capture most the exchange rate instab ...
Country report AZERBAIJAN - Rabobank, Economic Research
... deemed the worst in Azerbaijan’s history by the opposition and fell short of international standards according to western observers. The government’s position is strengthened by the country’s energy resources, both domestically and internationally. Large oil revenues have, for example, allowed the g ...
... deemed the worst in Azerbaijan’s history by the opposition and fell short of international standards according to western observers. The government’s position is strengthened by the country’s energy resources, both domestically and internationally. Large oil revenues have, for example, allowed the g ...
2010 - Board of Studies
... Cumulative proportion of persons ranked by income and wealth (%) According to the diagram, which statement is correct for this economy? (A) Wealth has a higher Gini coefficient than income and the distribution of wealth is more unequal than the distribution of income. (B) Income has a higher Gini ...
... Cumulative proportion of persons ranked by income and wealth (%) According to the diagram, which statement is correct for this economy? (A) Wealth has a higher Gini coefficient than income and the distribution of wealth is more unequal than the distribution of income. (B) Income has a higher Gini ...
Budget Balance and Trade Balance: Kin or Strangers A Case
... funds available to finance new investment, which leads to an inflow of funds from overseas. An offsetting adjustment to the current account entails trade deficits. Abel (1990a, b) and Lau et al (2004) suggest that interest rates and exchange rates are the primary transmission channels. This view is ...
... funds available to finance new investment, which leads to an inflow of funds from overseas. An offsetting adjustment to the current account entails trade deficits. Abel (1990a, b) and Lau et al (2004) suggest that interest rates and exchange rates are the primary transmission channels. This view is ...
Robert E. Cumby Working POLICY UIDER
... economy to a stationary equilibrium is characterized by a current-account surplus (deficit) and a depreciating (appreciating) capital-account exchange rate. Open-market policy is analyzed in Section II, where it is demonstrated that the authorities are able to exert long-run control over the money s ...
... economy to a stationary equilibrium is characterized by a current-account surplus (deficit) and a depreciating (appreciating) capital-account exchange rate. Open-market policy is analyzed in Section II, where it is demonstrated that the authorities are able to exert long-run control over the money s ...
Q1. The British pound has lost value (weakened/depreciated)
... those mass merchants—toys, stereos, T-shirts—comes from Asian countries where currency values are more or less pegged to the U.S. dollar. A dollar will still be worth about 7.5 Chinese yuan no matter how much value it loses relative to the euro. The big-box retailers also tend to have supplier contr ...
... those mass merchants—toys, stereos, T-shirts—comes from Asian countries where currency values are more or less pegged to the U.S. dollar. A dollar will still be worth about 7.5 Chinese yuan no matter how much value it loses relative to the euro. The big-box retailers also tend to have supplier contr ...
Which of the following results when federal government
... Which of the following results when federal government expenditures are less than the federal government’s total receipts? A. a trade surplus B. a federal budget deficit C. a negative balance of payments D. a federal budget surplus Use the list below to answer the question. Duties of the Federal Res ...
... Which of the following results when federal government expenditures are less than the federal government’s total receipts? A. a trade surplus B. a federal budget deficit C. a negative balance of payments D. a federal budget surplus Use the list below to answer the question. Duties of the Federal Res ...
i. economic environment - World Trade Organization
... particularly of manufactured goods (section (3)(i) below)). Singapore also experienced a surge in transport and wholesale trade activities, reflecting its role as a regional trading and logistics hub. Labour markets too proved more resilient this time around than in previous recessions: the unemploy ...
... particularly of manufactured goods (section (3)(i) below)). Singapore also experienced a surge in transport and wholesale trade activities, reflecting its role as a regional trading and logistics hub. Labour markets too proved more resilient this time around than in previous recessions: the unemploy ...
a.s 3.4 - GHEconomics
... e.g. a country may have high GDP but there also may be large numbers of people living in poverty. ...
... e.g. a country may have high GDP but there also may be large numbers of people living in poverty. ...
Chapter 5.2 Read More Online
... If a foreign automobile manufacturer increases the prices of cars sold in the United States, how many fewer cars will it sell? Will sales by U.S. auto makers rise, and if so, by how much? These issues are important to both foreign and domestic auto makers. To answer these questions, we’ll examine th ...
... If a foreign automobile manufacturer increases the prices of cars sold in the United States, how many fewer cars will it sell? Will sales by U.S. auto makers rise, and if so, by how much? These issues are important to both foreign and domestic auto makers. To answer these questions, we’ll examine th ...
McGraw-Hill/Irwin
... Review Question 19-1 How does monetary policy affect the trade balance? An expansionary monetary policy increases incomes, so imports increase and the trade deficit increases. A contractionary monetary policy will decrease income and imports and the trade deficit. Review Question 19-2 Explain the ad ...
... Review Question 19-1 How does monetary policy affect the trade balance? An expansionary monetary policy increases incomes, so imports increase and the trade deficit increases. A contractionary monetary policy will decrease income and imports and the trade deficit. Review Question 19-2 Explain the ad ...
Latin America in the Post-Washington Consensus Era Abstract:
... The crisis, however, was more lasting and acute than expected, and, in fact, the 1980s became known in Latin America as the lost decade. By the mid1980s most analysts were certain that the crisis was going to be long lived (DiazAlejandro, 1985) and some argued that a radical change in the developme ...
... The crisis, however, was more lasting and acute than expected, and, in fact, the 1980s became known in Latin America as the lost decade. By the mid1980s most analysts were certain that the crisis was going to be long lived (DiazAlejandro, 1985) and some argued that a radical change in the developme ...
Openness in goods markets
... holdings of U.S. assets are greater (less) than U.S. holdings of foreign assets, in which case there is a capital account surplus (deficit). The numbers for current and capital account transactions are constructed using different sources; although they should give the same answers, they typically do ...
... holdings of U.S. assets are greater (less) than U.S. holdings of foreign assets, in which case there is a capital account surplus (deficit). The numbers for current and capital account transactions are constructed using different sources; although they should give the same answers, they typically do ...
foreign exchange risk and diversification
... • Portfolio investors should allocate shares in their portfolios to countries’ assets as: - a decreasing function of the asset’s risk, and - an increasing function of its expected rate of return (risk premium). • Valuation effect: a 1% increase in supply of $ assets (whether in the form of money or ...
... • Portfolio investors should allocate shares in their portfolios to countries’ assets as: - a decreasing function of the asset’s risk, and - an increasing function of its expected rate of return (risk premium). • Valuation effect: a 1% increase in supply of $ assets (whether in the form of money or ...
Macroeconomic management and fiscal policy
... increases) can slow down inflation, reduce current account deficit Fiscal expansion (tax cuts, spending increases) can shrink unemployment, increase aggregate demand and help restore output to full capacity, i.e., bring actual GDP up to potential GDP, especially if monetary policy is impotent ...
... increases) can slow down inflation, reduce current account deficit Fiscal expansion (tax cuts, spending increases) can shrink unemployment, increase aggregate demand and help restore output to full capacity, i.e., bring actual GDP up to potential GDP, especially if monetary policy is impotent ...
Trade Deficits - Federal Reserve Bank of Dallas
... tautology, and no conclusion about causality is possible. For example, it is equally true that the volume of goods and services available to an economy (C + I + G ) consists of domestic output (GDP ) plus imports minus exports —that is, ...
... tautology, and no conclusion about causality is possible. For example, it is equally true that the volume of goods and services available to an economy (C + I + G ) consists of domestic output (GDP ) plus imports minus exports —that is, ...
Promoting active learning
... economic development in the shortest possible period of time and is using the method of deficit financing. 5. Uncertainty in getting foreign assistance: Though the LDCs have been receiving foreign assistance yet the amount of aid received has always remained uncertain. The government for increasing ...
... economic development in the shortest possible period of time and is using the method of deficit financing. 5. Uncertainty in getting foreign assistance: Though the LDCs have been receiving foreign assistance yet the amount of aid received has always remained uncertain. The government for increasing ...
Building Mega Project : How to Maintain Economic Stability?
... Impact on Financial Systems : Impact on Excess Liquidity This depends on imported goods as it leads to a decreasing in bank’s money supply. However, it depends on the amount of loans and spending. Mega project induces a continuous investment in ...
... Impact on Financial Systems : Impact on Excess Liquidity This depends on imported goods as it leads to a decreasing in bank’s money supply. However, it depends on the amount of loans and spending. Mega project induces a continuous investment in ...
Talk: Exchange Rates
... -Pegs: Setting the exchange rate to the dollar or some other currencies. Adjust by ( revaluation and devaluation. Franco-phone countries in Africa now peg to Euro -Crawling Peg: Setting an exchange rate target (allowed change in narrow bands) Monetary union (Single Currency, Free Mobility of Capit ...
... -Pegs: Setting the exchange rate to the dollar or some other currencies. Adjust by ( revaluation and devaluation. Franco-phone countries in Africa now peg to Euro -Crawling Peg: Setting an exchange rate target (allowed change in narrow bands) Monetary union (Single Currency, Free Mobility of Capit ...