1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
creativ13 [48]
3 years ago
8

Explain and discuss how each phase of the boom-and-bust cycle has characterized the history of capital flows from the advanced i

ndustrial countries to the developing world. Should national governments or international institutions regulate capital flows? How effective are capital controls? What is the role of the IMF in regulating cross-border capital flows
Business
1 answer:
Neporo4naja [7]3 years ago
3 0

Answer:

The boom and bust cycle is a process of economic expansion and contraction that occurs one after the other. During the boom the economy grows, jobs are plentiful and the market brings high returns to investors. In the subsequent bust the economy shrinks, people lose their jobs and investors lose money.

Explanation:

Characteristics of Boom: Increases in demand for capital/consumer goods. Businesses tend to increase their investment, employment opportunities abound, Consumer confidence is strong and consumers have a positive outlook.

The bust periods are referred to as recessions; if the recession is particularly severe, it is called a depression.

Since the mid-1940s, the United States has experienced several boom and bust cycles. Why do we have a boom and bust cycle instead of a long, steady economic growth period? The answer can be found in the way central banks handle the money supply.

During a boom, a central bank makes it easier to obtain credit by lending money at low interest rates. Individuals and businesses can then borrow money easily and cheaply and invest it in, say, technology stocks or houses. Many people earn high returns on their investments, and the economy grows.

Yes, national government and international institutions should regulate capital flows because when credit is too easy to obtain and interest rates are too low, people will overinvest. This excess investment is called “malinvestment.”

When this happens, There won’t be enough demand and the bust cycle will set in. Investments will decline in value. Investors lose money, consumers cut spending and companies cut jobs. Credit becomes more difficult to obtain as borrowers become unable to make their loan payments.

The IMF controls cross border flows by promoting exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.

You might be interested in
Kiwi Plc sold an antique painting which had been purchased inJanuary 1996 for £21,000. It was sold for £4,200 in January 2021. T
Hitman42 [59]

Answer:

$17,450

Explanation:

The antique painting that was bought in January 1996 was sold for $21,000

It was sold for 4,200 in January 2021

It received a net auction fee of 650

Therefore the allowable loss can be calculated as follows

= 21,000-4200+650

= 17,450

Hence the allowable loss is $17,450

5 0
2 years ago
On April 1, 2018, Elucian Corporation invested in the bonds issued by the City of Westminster on January 1, 2018. These 10-year
timofeeve [1]

Answer:

D $302, 250

Explanation:

The computation of the total amount paid is shown below;

Total amount paid = Face value + accrued interest

= $300,000 + $300,000 × 3% × 3 months ÷ 12 months

= $302,250

hence, the total amount paid is $302,250

Therefore the correct option is d.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

3 0
3 years ago
Which crimes are complete when the criminal act and criminal intent occur and there is no requirement for resulting harm?
natta225 [31]
Conduct crimes

Hope this helped!
4 0
3 years ago
Takisha Jorimoto works in finance for a small microbrewery. This week Takisha is working on a budget for the next 12 months. She
larisa [96]

Answer:

to follow her heart

Explanation:

and you will follow the steps

8 0
2 years ago
A web interface which represents integrated personalized business content delivered to senior managers is
Annette [7]

Answer:

Web portal

Explanation:

A web portal, simply called a portal, is a specifically designed website that provides specific and relevant information to its users. The information is accessed from a single interface. A portal serves as a reference point or a collection of categorized content.

In an organization, a web portal can be designed to present content relevant to senior managers only. The portal allows the senior managers to search, navigate and apply content relevant to their duties from a single interface point

3 0
2 years ago
Other questions:
  • Arman sets the goal for his sales team to increase revenue by 40%. which main function of a manager does this demonstrate?
    7·2 answers
  • Predict how the price of athletic shorts would change if schools banned their use.
    5·1 answer
  • . A one-product firm estimates that its daily total cost function (in suitable units) is C (x) = x^3 - 6x^2 + 13x + 15 and its t
    8·1 answer
  • Which sentences correctly describe the precautions you can take to protect your personal information as a consumer? Elizabeth li
    11·2 answers
  • Waupaca Company establishes a $400 petty cash fund on September 9. On September 30, the fund shows $122 in cash along with recei
    14·1 answer
  • The Rogers Corporation has a gross profit of $746,000 and $305,000 in depreciation expense. The Evans Corporation also has $746,
    8·1 answer
  • Cutoff tests designed to detect valid sales that occurred before the end of the year but have been recorded in the subsequent ye
    14·1 answer
  • A weaker dollar benefits_______and hurts______.
    10·1 answer
  • On January 1, 2019, Wasson Company purchased a delivery vehicle costing $47,550. The vehicle has an estimated 7-year life and a
    9·1 answer
  • Sometimes people are not aware that their personal information is being gathered. This is
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!