Questions 1. Where in the Current Account would the imported telecommunications equipment be listed? Would this correspond to the increase in magnitude and timing of the Financial Account? The imported telecommunications equipment would be listed in the Current Account as an imported of good. The other vendors that sold the equipment would be includee in the net other investment. This would correspond to the increase in net other investment so the Financial Account would have a large negative
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TACKLING CURRENT ACCOUNT DEFICIT IN INDIA INTRODUCTION There has been a sharp increase in the Current Account Deficit in Indian economy. In previous years the current account deficit increased moderate rate but in the fiscal year of 2011-12 there was sharp increase in current account deficit‚ marking a rise to nearly 4.2 per cent of GDP. High current account deficit has always posed serious implications for an economy and therefore for India it is a matter of concern. This research paper deals with
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Describe and account for the relationship between earthquakes and volcanic activity The close relationship between earthquakes and volcanic activity is evident from the maps depicting the locations which are prone to both. Volcanism is associated with two of the plate boundary types: divergent and convergent margins‚ so activity is usually found along oceanic ridges where plates are moving apart‚ near rift valleys‚ on subduction zones where the most violent activity takes place and over hot spots
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Student number: 0903642 Program: Financial and Economic Sector Policies Course title: International Macroeconomics and Policy Assignment title: Analyzing relationship between inflation rate and per capita GDP growth INTRODUCTION There have been different theories for explaining crucial relationship between inflation and per capita GDP growth. In this paper we will consider the neoclassical model and wage equation. This approach is very useful in terms of flexibility to understand underlying
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The relationship between Life Expectancy at birth and GDP per capita (PPP) Candidate: Teacher: Candidate number: Date of submission: Word Count: 2907 Section 1: Introduction In a given country‚ Life Expectancy at birth is the expected number of years of life from birth. Gross domestic product per capita is defined as the market value of all final goods and services produced within a country in one year‚ divided by the size of the population of that country. The main objective
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W P S (DEPR) : 16 / 2012 RBI WORKING PAPER SERIES Sustainable Level of India’s Current Account Deficit Rajan Goyal DEPARTMENT OF ECONOMIC AND POLICY RESEARCH AUGUST 2012 The Reserve Bank of India (RBI) introduced the RBI Working Papers series in March 2011. These papers present research in progress of the staff members of RBI and are disseminated to elicit comments and further debate. The views expressed in these papers are those of authors and not that of RBI. Comments and observations
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should recognize that it will be in constant need of more funds owing to its intended policy of moving into new product lines in growth-oriented industries. To the extent the shareholders have strong expectations about maintenance of the current dividend‚ the current policy is appropriate. The company through advertisement should make the investors aware of the new growth prospects and greater investment opportunities ahead. Such an announcement would help prevent the share prices from falling on
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and global economies.[1][2] With microeconomics‚ macroeconomics is one of the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP‚ unemployment rates‚ and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income‚ output‚ consumption‚ unemployment‚ inflation‚ savings‚ investment‚ international trade and international finance. In contrast‚ microeconomics
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Gross domestic product (GDP) is the total market value of all final goods and services produced in an economy in a year or a given time period within a country’s borders (domestic output). This includes all production‚ both material and intellectual‚ everything produced by government and private business as well as consumer goods and capital construction. Gross national product (GNP) is the total income earned by a country’s factors of production in a year or a given time period‚ regardless of where
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The US Current Account Deficit Case Analysis 1 The large US current account deficit is attributed to a widening trade imbalance which accounts for 87% of the US deficit (see Exhibit 1). The trade deficit is the result of globalization‚ consumer spending‚ and large current account surpluses found in China‚ oil exporting countries‚ and Russia totaling a combined surplus of $920B in 2008 (see Exhibit 2). Globalization of production resulting from low labor costs in China and other emerging markets
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