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Economics Questions/Answers

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economics questions/answers
Paper instructions:
1. What is foreign aid and what is the goal of foreign aid? Does foreign aid promote economic development? Explain briefly.
2. Why can’t all the balance of payments accounts be in surplus?
3. What factors determine the demand for British pounds in foreign exchange markets? How are exchange rates determined under a flexible exchange rate system?
4. Describe developing countries and how they differ from industrial market economies. How can international trade aid development? In what ways does the international economy impose problems on developing countries?
5. How did the Bretton Woods system operate? What caused its collapse? Some think the current system of managed but floating rates is too unstable. What would generate the instability?
6. READ ATTACHED ARTICLE 20.2 ANSWER QUESTIONS 1
 


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