AB 204 Unit 6 Assignment AB 204 Unit 6 Assignment | страница 2

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.