Indicate whether Net Capital Outflows (NCO) will increase (be positive) or decrease (be negative) in each of the followi
Posted: Sun May 29, 2022 7:36 pm
Indicate whether Net Capital
Outflows (NCO) will increase (be positive) or decrease (be
negative) in each of the following scenarios. Explain your answers.
Assume you are living in the Pakistan.
Chinese residents buy Pak government
bonds
Pak receives remittances from abroad
Real interest rates changes in Pakistan from 10% to
12%
Domestic Investment (I) are greater than National Savings
(S)
Pak exports cotton to USA worth Rs100 million
Pak receives loans from the IMF
Outflows (NCO) will increase (be positive) or decrease (be
negative) in each of the following scenarios. Explain your answers.
Assume you are living in the Pakistan.
Chinese residents buy Pak government
bonds
Pak receives remittances from abroad
Real interest rates changes in Pakistan from 10% to
12%
Domestic Investment (I) are greater than National Savings
(S)
Pak exports cotton to USA worth Rs100 million
Pak receives loans from the IMF