(a) Locate and correct the following problems facing nation 1 economy using expenditure changing and expenditure
Posted: Fri Jul 01, 2022 7:54 am
(a) Locate and correctthe following problems facing nation 1 economy usingexpenditure changing and expenditure switching policies.
(i). External deficit andinternal unemployment
(ii). External surplus andinternal inflation.
(b). If the government ofnation 1 does not like to change the value of the domesticcurrency, then how problems mentioned in (a) can be removed whenthere is flexible exchange rate and capital mobility isinelastic.
(i). External deficit andinternal unemployment
(ii). External surplus andinternal inflation.
(b). If the government ofnation 1 does not like to change the value of the domesticcurrency, then how problems mentioned in (a) can be removed whenthere is flexible exchange rate and capital mobility isinelastic.