Current Macroeconomic Situation, Fiscal and Monetary Policies Current Macroeconomic Situation, Fiscal and Monetary Policies Introduction As the leading world economy, the United States and has been in a recession since 2008 and the leading outcome of this recession has been no other than unemployment. The newsflash among media and television about this recession has resulted in unemployment, and how to remedy this “current macroeconomic situation”. No one seems to have an immediate
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A. Income. in macroeconomics is more than the income received by employees in the form of salaries or wages. example, for households and individuals, income is the sum of all the wages, salaries, profits, interest s payments, rents and other forms of earning received in a given period of time. B. Consumption. Consumption means the expenditures made by households on goods and services. Example, consumer durable products like washing machines are consumed immediately after purchase. C. Multiplier
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Introduction of Foreign Direct Investment Foreign Direct Investment (FDI) is known as the long term participation by country A into country B. It usually involves participation in management, joint-venture, transfer of technology and expertise. In other words, foreign direct investment is the cross-border corporate governance mechanism through which a company gains productive assets in another country. FDI is different from other major forms of foreign investment in that it is motivated largely
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Intermediate Macroeconomics 2 Coursework Question 1 a) The production function is Y=AKαL1-α as it is a constant-returns-to-scale production function. Computing the Solow residual giver you ∆AA , which is the rate of technological progress. From the question: α=0.2 ; ∆LL=n=0.01; ∆KK=0.07 ; ∆YY=0.05 Taking natural logarithms of the production function gives: ln(Y)=ln(A)+αln(K)+1-αln(L) Taking the first difference of both sides yields: ln(Y)-ln(Y-1)=ln(A)-ln(A-1)+α(lnK-lnK-1)+1-α(ln(L)-ln(L-1))
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Musinundo was a leading retailer of prerecorded music in Argentine, which have 39% market share in 1998, employed more than 2000 people and held headship position in the home-entertainment product market in December 1999. However, because of the depression of economic in Argentine, Musimundo was forced to file for bankrupt in August 2001. The reasons for the depression of economic in Argentine: Argentine government overvaulted the Argentine peso in the past. By 2001, foreign debt caused and had
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FICCI Economic Outlook Survey July 2011 FICCI, Federation House, 1, Tansen Marg, New Delhi FICCI Economic Outlook Survey – July 2011 About the Survey The seventh round of FICCI’s Economic Outlook Survey was conducted during the period 7th July and 19th July, 2011. As part of the survey, a structured questionnaire was drawn up and sent to economists and financial analysts with a view to gauge their perception and views on topical economic issues as well as to seek their outlook for key macro-economic
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The Impacts of Economic Growth Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. There are many positives and negatives with economic growth. Economic growth improves standard of living through sustained GDP growth, it improves tax revenues and provides the government with more money to spend on healthcare, education etc. Growth
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Global Expansion American Intercontinental University Table of Contents 3 - Executive Summary 5 – Abstract 6 – Introduction 6 - Foreign Company Acquisition 7 - Advantages of joining the EU 8 - Disadvantages 9 - Multinational Corporations 9 - Financial Institutions and Credit 10 - Final choice and rationale 10 – Conclusion 12 - References Executive Summary As international markets are expanding and new opportunities are opening up abroad for businesses to grow within the international
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California Santa Cruz, CA 95064 USA Rajeswari Sengupta Department of Economics University of California Santa Cruz, CA 95064 USA Nirvikar Singh Department of Economics University of California Santa Cruz, CA 95064 Abstract A key challenge for macroeconomic policy in open economies is how to simultaneously manage exchange rates, interest rates and capital account openness—the trilemma. This paper calculates a trilemma index for India and investigates its evolution over time. We find that financial
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1. Explain why another country would abandon its own currency and use the U.S. dollar as its official currency instead. Explain why such a policy will not work in the long run. 5 points Other countries abandon their own currencies in order to protect themselves from possible devaluation and inflation as well as reduce a number of risks they might have when it comes to foreign investments. Thus, by abandoning their own currency and using the U.S. dollar they are able to provide a more stable and
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