as low Gross Domestic Product (GDP) due to very low annual growth rate of our economy (2%)‚ rising fiscal deficit (5.8% of total size of economy)‚ inflation (15%)‚ lowest tax to GDP ratio in the world (9%)‚ rise in foreign debts and government’s internal borrowings from the State Bank‚ rupee losing its value against dollar consistently‚ government’s failure in collecting taxes and utility bills and increasing poverty (40% people in Pakistan are living under poverty line). With these deteriorating indicators
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excessive role of the central bank in financing the current account deficit. 2. (2 points) Suppose that the U.S. net foreign debt is 25 percent of U.S. GDP and that foreign assets and liabilities alike pay an interest rate of 5 percent per year. What would be the drain on U.S. GDP (as a percentage) from paying interest on the net foreign debt? What if the net foreign debt were 100 percent of GDP? At
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Conclusion In this report‚ it discussed Chinese‚ German‚ Greek and American government debts‚ deficit and GDP respectively. All of debts in these countries are show a rise trend but still have some difference. To give more details‚ Greek debts shown a continued increase as same as German‚ while American government debts had a 3 years decline between 1998 and 2001. After the American financial crisis broke out in 2007‚ it presents a rapid growth trend reach to 102.93(%GDP) in 2011. Chinese shown
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Current political talks are focused on the impending trade deficit our country continues to run. Both candidates for the presidency have argued for ways in which they intend to bring balance to the economy. The United States has been running a consistent trade deficit with its trading partners since the 1970s (Budget of the‚ 2012). The Great Recession (2008-2012) saw huge deficits that are continuing to worry American citizens. Many Americans are asking the government to find a way to balance the
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closer to expenditure. European Central Bank (ECB) One of the seven institutions of the European Union (EU) listed in the Treaty on European Union (TEU). It is the central bank for the euro and administers the monetary policy of the 17 EU member states which constitute the Eurozone‚ one of the largest currency areas in the world. Financial contagion It refers to a scenario in which small shocks‚ which initially affect only a few financial institutions or a particular region of an economy‚ spread
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The causes of the large trade deficit of the US The undervaluation of the RMB The causes of the large trade deficit of the US A trade deficit is when a country imports more than it exports. As a matter of fact‚ in 2012‚ the US trade is preoccupied by a deficit reaching 539.514 billion. According to Robert E. Scott‚ the Director of Trade and Manufacturing Policy Research at the Economic Policy Institute in the US‚ there are three main factors that explain this phenomenon. He confirms that
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budget deficits and interest rates because some evidence shows its negative relationship‚ some shows that it does not raises interest rates while some evidences show its positive relation during statistical tests. When Totam shows the data about Federal Debt‚ no doubt the evidence specifies the budget deficits and effects on interest rates. He shows that effects of cyclic deficits on weak economy while cyclic expansion begins to raise up interest rates while budget deficits shrink. After the involvement
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and functional organizational structure. Legal Form of Organization Caterpillar is an organization that has the legal form of a corporation with more than $ 70 billion in assets. The main shareholders of the corporation are Vanguard group Inc.‚ State Street Global Advisors Ltd.‚ and Fidelity Management and Research Company with 30‚863‚961‚ 16‚637‚962‚ and 12‚216‚827 shares held respectively. Key activities of organization Every year as many other corporations‚ Caterpillar does a deeply study
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Baby Boom In Canada there are is around thirty- four million people who vary in age. There are people who range from the age of zero to one hundred plus. More people come into Canada every year causing the average ages to go up and down. As our country gets older the people of the country get older as well. The further we advance into the future‚ more things are being discovered throughout the years. The baby boom in 1946 till 1964 has brought in a lot of babies‚ and ever since then they have been
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called “one of the most expensive forms of credit in the world” (Skiba and Tobacman‚ 2008). A typical two-week payday loan costs 15EUR per 100EUR borrowed—a 391.07% annual percentage rate. Many people call consider taking these loans as getting into a “debt trap”. From the other side‚ industry representatives claim that its rapid growth is explained by a great value of the services in helping the clients to improve their welfare. Usual bank loans aim to help people buy products they would be able to buy
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