The official reserves increase when there is trade surplus and decreases when there is trade deficit. When the country exports more than it imports , then it is trade surplus. It provides enough to pay for all the domestic production and also increase the reserve. This increase in reserves leads to surplus in balance of payment account.
Where as when the import of the country is more than its exports, then it is trade deficit. It means that more money is going out of the country than what would be coming in the country. This decreases the official reserve of the country, leading to deficit in the BOP of the country.
Explain why “a building up of official reserves measures a BOP surplus, while a drawing down...
1. Expain the effect of a discretionary cut in taxes of $40 billion on the economy when the economy’s marginal propensity to consume is .75. How does this discretionary fiscal policy differ from a discretionary increase in government spending of $40 billion? 2.Explain what is meant by a built-in stabilizer and give two examples. 3.Differentiate between discretionary fiscal policy and nondiscretionary or built-in stabilization policy. 4.What does the “standardized budget” measure and of what significance is this concept? 5.What are...
Explain why the displacement of a weight moving up and down on a spring can be considered a form of simple harmonic motion that can be explained using a wave equation of the form y = a sin (bt + c) where t is the time. Explain the interpretation of y, a, b, c in this context.
11:39 O. Read Only - You can't save changes to this fi... 3. Why MSME require innovative approach of marketing their products? SECTION.B Case Study (50 Marks) Balance of Payment (DOP) is a statement which records all the monetary transactions made between residents of a country and the rest of the world during any given period. This statement includes all the transactions made by to Individuals, corporates and the government and helps in monitoring the flow of funds to develop...
Please pick any stock market index and explain why in has gone up or down in the past two (2) years.
Use the Law of Demand to explain why all consumers must receive a surplus whenever they purchase more than one unit of a product but may receive no surplus if only one unit is bought. Make up a numerical example to illustrate. Provide two reasons why consumer surplus must increase when the price of a product falls? Explain fully why taxing a product leads to deadweight loss. Use appropriate graphs to explain why the deadweight loss is greater the more...
Q6. Explain why intervention to support a currency before a financial crisis often fails, while intervention to push down a currency can be more effective.
In chapter 8 we will examine stratification, consider why people move up or down the social class ladder, and discuss some of the sociological theories that explain why there are haves and have-nots, and look at global inequality. For this assignment, Define social stratification and explain the two types of the stratification system along with two examples from each system
Explain duopolit’s dilemma. Your answer should explain as to why both the competing firms end up with low price option while they optimally could have gone for the high price and high profit. i don't want the answer in picture
True False-Ambiguous and Explain why 6. Suppose that a single-price monopolist bought up all the firms in a competitive industry and was able to block new firms from entering. In this case, consumer surplus would fall, a deadweight loss would arise, and the firm would earn positive economic profits. Draw a graph.
The budget surplus trap — why it may prove elusive By business editor Ian Verrender Posted 23 Sep 2019, 4:25am Josh Frydenberg gestures during a press conference. PHOTO: Treasurer Josh Frydenberg announced an end to a decade of deficits on Thursday. (ABC News: Tamara Penniket) RELATED STORY: Balanced budget means the Government is 'working against' the Reserve Bank's efforts to boost the economyRELATED STORY: Budget comes in $13.8 billion better off than first projectedRELATED STORY: 'How'd you go broke? Slow...