South Africa’s economy is affected by high FDI fluctuations. Propose measures to stabilise and increase the country’s FDI inflows in the post COVID era and comment on their suitability (highlight 10-20 innovative advantagesand disadvantages to address the challenges of uncertainty and instability of FDI into the country.)

South Africa’s economy is affected by high FDI fluctuations. Propose measures to stabilise and increase the country’s FDI inflows in the post COVID era and comment on their suitability (highlight 10-20 innovative advantagesand disadvantages to address the challenges of uncertainty and instability of FDI into the country.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a macroeconomic model for an open economy with the government. Consumption is given by C = 250 + bYd, where b = 0.8, Yd = (1-t)Y, and t = 0.1. Investment is given by I = 1,200 – 2,000R, and net export is given by X = 525 – 0.1Y – 500R. Assume that G = 1,200. Money demand is given by (Md/P) = 0.1283Y – 1,000R. Assume that P = 1, and the fixed money supply is given by (Ms/P) = 900. Drive the expression for the IS curve from the model. Drive the expression for the LM curve from the model. Drive the IS-LM equilibrium from the model.
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