Q1. Illustrate the meaning of crowding out effect?
Q2. Illustrate the responsibility of intermediaries in the financial market?
Q3. Differentiate between the nominal and real rate of interest.
Q4. Describe the responsibility of the government in the loanable funds market.
Q5. Illustrate the meaning of twin-deficit?
Q6. Describe how the international flow of commodities and loans are inter-related between themselves.
Q7. Explain why does the saving based on the real interest rate not on the nominal interest rate?
Q8. Explain why does the world interest rate is provided to a small open economy?