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Author Question: Give, and explain, an example of conflict between objectives in considering an investment proposal. ... (Read 69 times)

Jramos095

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on: Jun 30, 2018
Give, and explain, an example of conflict between objectives in considering an investment proposal.
 
  What will be an ideal response?

Question 2

If domestic savings was 2 billion last year and domestic investment was -12 billion, then the current account balance is
 
  A) 10 billion.
  B) -10 billion.
  C) 14 billion.
  D) -24 billion.


matt95

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

Perhaps the most obvious conflict mentioned in the chapter is between maximizing output and maximizing employment. A broader response, involving private vs. social returns, can also be used.

Answer to Question 2

C


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