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EarlenePark

BU204 UNIT 6 ASSIGNMENT

EarlenePark

BU204 UNIT 6 ASSIGNMENT

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BU204 Unit 6 Assignment

 

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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