AB 204 Unit 7 Assignment Money , Banks and the Federal Reserve System
describe possible factors that may explain the differences between the GDP growth rates and long term economic growth of the advanced and developing economies for the countries you selected .
** Somalia does not participate in the bond market , commercial banking or lending , net domestic credit , and there is also no cash surplus . The United States however does participate in all these which is why the GDP is higher and also why it has a great investment market . The difference between these factors is there is not depth in the country Somalia when it comes to investing as a whole . It is basically land with no structure for the work force . Currently the regime in charge has no order and this would explain why the development of this country has slowed if not stopped .
PART 2 : Loanable Funds Market
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 .
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AB 204 Unit 7 Assignment Money , Banks and the Federal Reserve System
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