Principles of Economics (Second Edition)
2nd Edition
ISBN: 9780393614077
Author: coppock, Lee; Mateer, Dirk
Publisher: W. W. Norton & Company
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Chapter 24, Problem 7QFR
To determine
To explain:
The way funds by foreign countries can help expand the output of a country.
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Principles of Economics (Second Edition)
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- Billions of people in the world make two dollars a day or less. In fact, a billion people make less than one dollar a day. In such places, a loan of $100 or $200 makes a huge difference. That's where microloans from organizations such as Opportunity International come in. Opportunity International is an organization that grants microloans to people, mostly women, in developing countries so they can invest in a business. Those investments often lead to community growth and employment, and help the owners, themselves, to prosper on a moderate scale. The borrowers must pay back the money with interest—when they do, they can borrow more and keep growing. Opportunity International, unlike some other microlending organizations, also provides a banking function where entrepreneurs can safely put their money. They can also buy some insurance to protect themselves against loss. Opportunity International helps over a million people in over 28 countries, giving them the opportunity to change…arrow_forwardWhat are three public policies that can facilitate growth in economyarrow_forwardWhat type of economic growth is this country experiencing? Thanks!arrow_forward
- According to Adam Smith, where does the wealth of a country come from? What does society need in order to enable the growth of wealth?arrow_forwardIn an unhindered free market, the supply and demand for loanable funds and, hence, the going rate of interest are driven by: The amount of money printed by the U.S. Treasury Time preferences of market participants Animal spirits The amount of deposits in the Federal Reservearrow_forwardwhat causes two country to have similar investment but different growth ratearrow_forward
- Would you rather live in a nation with a high per capita GDP and low growth rate, or in a nation with a low per capita GDP and high growth rate?arrow_forwardIf foreign income and wealth decrease, this would most likely a. not affect the market for loanable funds. b. cause the supply of loanable funds to increase. c. cause the supply of loanable funds to decrease. d. cause the demand for loanable funds to increase in order for foreigners to maintain consumption. e. cause the demand for loanable funds to decrease.arrow_forwardWhat you mean by economic growtharrow_forward
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