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Author Question: Describe several components of the institutional environment in the HPAEs that are critical to their ... (Read 21 times)

nevelica

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on: Jun 30, 2018
Describe several components of the institutional environment in the HPAEs that are critical to their success.
 
  What will be an ideal response?

Question 2

What will be the effects of an increase in the money supply on the interest rate?
 
  What will be an ideal response?


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shewald78

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

Property rights are secure, bureaucracies are competent, contracts are enforceable, access to information is widespread, and regulations are clear and well publicized.

Answer to Question 2

An increase in the money supply will cause interest rate to decrease. This should increase investment and possibly consumption of durable goods. The reduction in the interest rate will cause a depreciation of the dollar.


nevelica

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

rleezy04

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Reply 3 on: Yesterday
Excellent

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