The balance of payment curve is positively sloped because the higher the level of income, the smaller the next export balance which can only be offset by a higher interest rate, hence reducing the net capital inflow
Dana05 answered the question on August 14, 2019 at 07:33
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What is the balance of payments made up of?
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What is the balance of payments made up of?
Date posted:
August 14, 2019
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Give the definition of balance of payments
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Give the definition of balance of payments
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August 14, 2019
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What is the effect of decrease in income on the interest rate?
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What is the effect of decrease in income on the interest rate?
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August 14, 2019
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What is the effect of decrease of money supply on the interest rate?
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What is the effect of decrease of money supply on the interest rate?
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August 14, 2019
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Describe the classical theory of money supply
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Describe the classical theory of money supply
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August 14, 2019
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Describe the precautionary motive for holding money according to Keynes
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Describe the precautionary motive for holding money according to Keynes
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August 14, 2019
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What are the challenges faced by clearing and forwarding firms?
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What are the challenges faced by clearing and forwarding firms?
Date posted:
July 29, 2019
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Differentiate between an inflationary gap and the deflationary gap
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Differentiate between an inflationary gap and the deflationary gap
Date posted:
July 18, 2019
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Derive the balanced budget multiplier
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Derive the balanced budget multiplier
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July 18, 2019
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What factors cause a shift in the IS curve
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What factors cause a shift in the IS curve
Date posted:
July 18, 2019
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derive of the IS equation using the expenditure approach and assuming the absence of government.
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Derive the IS equation using the expenditure approach and assuming the absence of government.
Date posted:
July 18, 2019
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Describe the life cycle income hypothesis of consumption
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Describe the life cycle income hypothesis of consumption
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July 18, 2019
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Describe the ratchet effect
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Describe the ratchet effect
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July 18, 2019
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Describe the absolute income hypothesis of consumption
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Describe the absolute income hypothesis of consumption
Date posted:
July 18, 2019
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Highlight the factors that determine the size of an economy’s National Income
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Highlight the factors that determine the size of an economy’s National Income
Date posted:
July 18, 2019
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What are the difficulties involved in the measuring of National Income
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What are the difficulties involved in the measuring of National Income
Date posted:
July 18, 2019
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Identify the approaches to the measurement of national income
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Identify the approaches to the measurement of national income
Date posted:
July 18, 2019
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Distinguish between leakages and injections in the economy giving examples
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Distinguish between leakages and injections in the economy giving examples
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July 18, 2019
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What are the limitations of macroeconomics
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What are the limitations of macroeconomics
Date posted:
July 18, 2019
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How does the interest rate affect the prices, demand and yields of bonds
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How does the interest rate affect the prices, demand and yields of bonds
Date posted:
July 18, 2019
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