Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Using the Key Account Identity and assume the numbers you select has been representative for many years: a) How can you tell whether a country
Using the Key Account Identity and assume the numbers you select has been representative for many years: a) How can you tell whether a country is a net lender or a net borrower? b) If public sector is a net borrower. Explain by using your own numbers (% of GDP) the different between whether the debt is internal or external. c) Present an example using your own numbers (% of GDP) a situation where private sector is a net lender while public sector is a net borrower. Explain what each number tell us about the players in each sector. d) Assume the numbers your chose in part c) is representative for many years. What can you tell about the situation in the country as a hole? Using the real exchange rate: e) The competitiveness of the manufacturing industry can be measured by using the real exchange rate. Present an example using words and your own numbers where the competitiveness increase. f) Use numbers om part e) in the purchasing power parity (PPP) and explain the conclusion you get from the theory
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started