In Bangladesh, the government guarantees rice farmers that it ...

[Kthamas]

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]

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

[Kthamas]

Wow, this really help

[ricroger]

Thanks for the timely response, appreciate it