Question 3 Part (a) In Japan, from the 1990s to the late 2000s, the interest rates fell to very low levels. However, thi

[answerhappygod]

Question 3 Part A In Japan From The 1990s To The Late 2000s The Interest Rates Fell To Very Low Levels However Thi 1 (57.46 KiB) Viewed 61 times

Question 3 Part (a) In Japan, from the 1990s to the late 2000s, the interest rates fell to very low levels. However, this failed to stimulate consumption or investment spending. Use the aggregate expenditure model to explain what might have happened. Part (b) Suppose you are a highly regarded international economic advisor. You have been asked to assess the possibilities of growth in an African country. It is a country abundant in labour and some natural resources. The capital to labour ratio is low. It has a free market economy. You have found that this country does not have a very strong and healthy banking system; however, the political system is stable and the government does a good job protecting property rights. Assess this country's prospects for growth. Recommend two things that would enhance the country's growth. [15 + 15 = 30 marks]