Author Question: In Bangladesh, the government guarantees rice farmers that it will buy rice at a specific price. ... (Read 88 times)

Kthamas · **on:** Jun 30, 2018

In Bangladesh, the government guarantees rice farmers that it will buy rice at a specific price. Explain the costs and benefits to farmers in good and bad harvest years.

What will be an ideal response?

Question 2

A typical IMF stabilization package involves

(a) erecting barriers against foreign investment.
(b) overvaluing the exchange rate.
(c) liberalization of exchange controls.
(d) a reduction in interest rates.
(e) all of the above.

mistyjohnson · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Supply and demand analysis with reference to elasticities plus a discussion of risk aversion is called for.

Answer to Question 2

C