A few months ago, persons were hoping and praying for a vaccine to be developed to fight against Covid 19. The good news is that there is now a vaccine and some countries have approved the use of said vaccine. Assume that governments will have to finance the purchase of the vaccine and that in order to finance the purchase of the vaccine Caribbean governments will have to take a loan from China. a. Using the IS-LM model, explain the impact of the government spending on vaccine on interest and income. b. Discuss THREE possible impacts that borrowing from China could have on a Caribbean country of your choice.

A few months ago, persons were hoping and praying for a vaccine to be developed to fight against Covid 19. The good news is that there is now a vaccine and some countries have approved the use of said vaccine. Assume that governments will have to finance the purchase of the vaccine and that in order to finance the purchase of the vaccine Caribbean governments will have to take a loan from China. a. Using the IS-LM model, explain the impact of the government spending on vaccine on interest and income. b. Discuss THREE possible impacts that borrowing from China could have on a Caribbean country of your choice.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 58CTQ: Are Says law and Keynes law necessarily mutually exclusive?

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Are Says law and Keynes law necessarily mutually exclusive?