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%
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%
Chapter29: International Finance
Section: Chapter Questions
Problem 2P
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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 |
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