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2. What is the likely impact of BREXIT for American-based companies doing business in Britain?
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- Identify what trade and financial impact Brexit will have on the British?Which negative consequences could Brexit have for London’s financial sector? Why has movement of goods between Britain and the E.U. become more difficult after Brexit? Why are companies trading with the E.U. countries unprepared for the effects of the Brexit?To what extent is Brexit showing the division in the UK?
- Brexit and Covid-19 restrictions may result in a recession. How can the UK government and Bank of England fix this with both fiscal and monetary policy?What are the effects of Brexit on logistics activities on a domestic scale and global scale?1. If an economy has a budget surplus of 400, private savings of 1,200, and investment of 1, 600, what will the balance of trade in this economy equal?
- 19. Suppose consumers decide to save a smaller proportion of their income. What are the implications for the current account? The financial account?Tell in your opinion how can the European economy break the deadlock of economic recession.A3) Finance What happens to the value of the dollar if the bank of japan increase its money supply and lower interest rates? How will this impact the value of the dollar, exports, and imports, AD and GDP?
- How distortions affect the market of tradable and non-tradable goods and how it affects the financial and economic values of these goods?If a combination of Brexit measures and Covid-19 restrictions results in a recession then how might the UK government and Bank of England alleviate this with fiscal and monetary policy? Are there any potential problems with such policies?1. Suppose the government cuts transfer payments in an economy with an inflationary gap. How would this policy affect bond prices, interest rates, investment, the exchange rate, net exports, real GDP, and the price level? Show your results graphically. 2. Federally funded student aid programs generally reduce benefits by $1 for every $1 that recipients earn. Do such programs represent government purchases or transfer payments? Are they automatic stabilizers? 3. The text notes that changes in oil prices can affect the inflation-unemployment outcome. Explain what effect changes in oil prices may have on these two variables.
