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Author Question: State-Owned Enterprises (SOEs) can succeed when a. they are free from political interference and ... (Read 65 times)

dalyningkenk

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on: Jun 30, 2018
State-Owned Enterprises (SOEs) can succeed when
 
  a. they are free from political interference and can make decisions according to economic criteria
  b. the government is clear about the SOE's objectives and enforces the rules
  c. the government is ready to subsidize the SOE in bad years
  d. only the most crucial firms are state owned
  e. SOEs never succeed according to economic criteria

Question 2

If a government limits interest rates to a level below equilibrium, how do savers and investors respond? How is the discrepancy resolved?
 
  What will be an ideal response?


Jody Vaughn

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

This is straight economics. Interest rate ceilings result in a quantity of funds demanded that exceeds the quantity supplied. The discrepancy is resolved through non-market rationing, on the basis of development policy or favoritism or both.


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