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
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
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
Step by step
Solved in 3 steps
