PLEASE HELP...I don't understand some Economics Mumbo Jumbo (1 Viewer)

[pricklygoo]

ok, i am just having a little trouble understanding some concepts of economics. i think that getting detailed answers to these questions would really help.

1. Explain the relationship between the current account and the capital and financial account, and how exchange rates are a part of this relationship

2. discuss whether you think Australia's foreign debt is a long term problem for the australian economy

3. Over a period of time, a high level of K&F account surplusses will result in a widening CAD. explain simply

4. outline recent trends in Australia's foreign liabilities and their impact on Australia's BOP

If anybody has any knowledge or old essays/short responses/notes to any of these areas of study could you please contribute. As economics is my weak area

Cheers,

Paddy

 

[LordPc]

ok, i am just having a little trouble understanding some concepts of economics. i think that getting detailed answers to these questions would really help.

1. Explain the relationship between the current account and the capital and financial account, and how exchange rates are a part of this relationship

2. discuss whether you think Australia's foreign debt is a long term problem for the australian economy

3. Over a period of time, a high level of K&F account surplusses will result in a widening CAD. explain simply

4. outline recent trends in Australia's foreign liabilities and their impact on Australia's BOP

If anybody has any knowledge or old essays/short responses/notes to any of these areas of study could you please contribute. As economics is my weak area

Cheers,

Paddy

lol, this sounds like an assignment and answering any of those questions would require a couple of paragraphs

2. Australia's foreign debt is a problem cause its getting too big and its not being repayed. so its just staying there and accumulating interest, which makes the CAD worse. so foreign debt is a problem as investors may notice that the debt isnt being repayed and therefore stop investing in australia which would be very bad. happened in asia a little while ago and it screwed them up, big time.

if you are having trouble your teacher is the best way of getting better.

 

[pricklygoo]

Yeah thanks for the help, i know the general ideas about all of it, we have covered it all and i have written notes but i just needed to know if i knew enough on the areas.

Thanks for the contribution.