Capital mobility-fiscal policy
Problem: Analyze the following statement: "Given an open economy with high capital mobility, fiscal policy is strengthened under fixed exchange rates."
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In recent years, "country risk analysis" has become an important part of international business. What is meant by "country risk"? Explain the factors that are involved in a country risk analysis.
Analyze the following statement: "Given an open economy with high capital mobility, fiscal policy is strengthened under fixed exchange rates."
What happens to the balance-of-payments under a fixed exchange-rate system when expansionary or contradictory monetary policy is used?
Problem: Explain the difference between expenditure-switching policies and expenditure-changing policies.
Respond to the following statement: "Anti-dumping laws are good for a nation".
Problem: Concerning the balance of international indebtedness, when is a country a net creditor or a net debtor?
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