What is investment? How is it related to nationalsaving in a closed economy?

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: 8. In a magical kingdom, the leakages were equal to 100 in 2019. In the same year, government…

A: Leakages means the decrease in production level due to rise in economic variable .  And such…

Q: educes spending uys and sells bonds and securities ncreases taxation ncreases the exchange rate`

A: Open market activities are the principle apparatus government to execute financial arrangement. They…

Q: (a) Did the Rand appreciate or depreciate against the GBP in 2016? (b) Did the Rand appreciate or…

A: Since you have asked multiple sub-parts in a question, we will answer only the first three sub-parts…

Q: Knowing the benefits and disadvantages of Foreign Direct Investment (FDI), which of the 4 types is…

A: The foreign direct investment is considered as the investment that the companies and the firms…

Q: How are both the real interest rate, r, and the real exchange rate, Q, actually determined?

A: The inflation rate is the difference between the actual and nominal interest rates. (The nominal…

Q: Discuss how changes in local real interest rates and foreign interest rates impact the decision to…

A: If the local or foreign rate of interest changes that will impact the local and foreign investment.

Q: Derive and explain the Net Export Function for the world and discuss the factors that impact the net…

A: Net exports measure the total trade of a nation, that is the difference between export and import.…

Q: Low interest rates means low inflation which means depreciated currency. This stimulates businessmen…

A: Firstly, we need to understand the interest rate mechanism. When there is low inflation, it will be…

Q: WHAT IS THE IMPORTANCE OF EXCHANGE RATE IN OUR ECONOMY

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: How do interest rates link money market and foreign exchange market?

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: how is the balance of payments linked to national saving and investment? explain.

A: Balance of Payment: The systematic track record of the economic transactions between the public or…

Q: What are the benefits and costs associated with foreign portfolio investment (FPI)?

A: Investments refer to the process of people or firms using some saved up money for further production…

Q: 2.) The country of Albanystan (country A) forms a small open economy on its own. It has savings SA =…

A: CAA is an abbreviation used for the current account of country A. CAB is an abbreviation used for…

Q: How do wars and pandemics affect a country's nominal exchange rate, interest rate, and production?

A: The nominal exchange rate basically determines that how much local money is required to acquire…

Q: What are net exports for China?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Is it more beneficial for a country to have a strong national currency or to have a weak national…

A: A national currency is one that a government issues through its central bank or other monetary…

Q: Suppose that in the same year Country A's GNP is $1,200, gross domestic private investment is $200,…

A: National saving is the total saving of an economy, it includes both private and government savings.

Q: Critically discuss some of the factors affecting the performance of currencies in emerging markets…

A: Currency fluctuations square measure a natural outcome of floating exchange rates, that is that the…

Q: Define nominal exchange rate and real exchange rate. What are the two main types of exchange-rate…

A: The rate of exchange signifies the worth of one currency to an overseas currency. In different…

Q: In an open economy, which of the following will always cause an increase in net exports? A all of…

A: In international trade, an export is a good or service produced in one country and sold to a…

Q: Define overvalued exchange rates. Discuss four ways in which governments policymaker can respond to…

A: An exchange rate between two currencies is the rate at which one currency is traded for another. The…

Q: Classify capital market in India

A: In India, capital market is classified into 4 categories:

Q: Suppose a country imposes an import tariff (as a topical real-world example, think about the U.S.…

A: Import tariff refers to a tax which is imposed on imports by the domestic country, so that foreign…

Q: Describe capital deepning

A: To produce goods and services various factors of production are required and they need to be…

Q: Suppose that the long term interest rate is decreasing since there is an expectation that the…

A: If interest rate is falling, foreign investment in the country will decrease, which will decrease…

Q: A country recently had $800 billion worth of domestic investment and its residents purchased $400…

A: Domestic investment of the country is given as $800 billion.   The residents of the country…

Q: Suppose there is an increase in foreign output. Show the effect on the domestic economy . What is…

A: The amount of products and services that is produced in a certain time period is referred to as…

Q: What is a foreign trade deficit or surplus? How does this affectinterest rates?

A: Foreign trade refers to the trade between two or more countries and trade includes the services of…

Q: What is the link between the foreign exchange market and the real economy

A: The foreign exchange market is the market where countries can buy, sell, exchange, and speculate the…

Q: For each of the following, specify whether the foreign direct investment is horizontal or vertical;…

A: Horizontal FDI: In case of horizontal FDI , a company uses the same production process to set up…

Q: Would each of the following transactions be includedin U.S. net exports or in U.S. net capital…

A: Net exports are the difference between the country's exports and imports.  Net capital outflow…

Q: Briefly explain any one component of the capital account

A: Capital account takes into consideration the changes in the assets and the liabilities which are…

Q: What is purchase power parity? Do you know any informal measure of PPP, explain how and what it…

A: Purchasing power parity (PPP) may be a popular metric employed by macroeconomic analysts that…

Q: Why is a current account surplus equivalent to foreign investment ？

A: The countries worldwide gets involved in the sale and purchase of the goods, services, inputs of…

Q: would each of the following transactions be included in net exports or net capital outflow? Please…

A: Net export refers to the excess export over imports and the net cash outflow is the excess capital…

Q: What is the connection between the Higher net income of central bank ang foreign exchange gains?

A: In an economy, the Central Bank earns profit by making lending activities and this net income can be…

Q: D) Countries, where the prices of non-tradable goods rise, experience decline in the purchasing…

A: Meaning of Exchange Rate: The term exchange rate refers to the situation under which a particular…

Q: 2) The country of Albanystan (country A) forms a small open economy on its own. It has savings SA =…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: a. Calculate Net Exports. Does the country face a trade deficit or surplus or neither?

A: Net exports indicate the total trade in an economy, as an excess of exports over imports. It can…