BU204
Unit 6 Assignment
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PART 1: Comparing Long-Run Economic
Growth Rates of Countries
Use the library and databases to conduct
research to identify the key factors that determine long term economic growth.
You can find the most up-to-date reports on the economic growth trends of
different countries under the World Bank website linked below.
PART
2: Loanable Funds Market
1. Examine each of the following
scenarios in the market for loanable funds. Explain the impacts on private
savings, private investment spending, and the rate of interest under each of
the following events. Assume the economy is autarky (closed) and it does not
have trade and capital transactions (flows) with foreign countries.
a. Assume the government balances its
budget and reduces the size of its deficit to zero. (Refer to the graph below).
What is its impact on private savings, private investment spending, and the
rate of interest?
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