Question 3 National savings in Namibia has recently increased. a) Explain the ef

Question

Question 3 National savings in Namibia has recently increased. a) Explain the effect of this increase on the real interest rates in Namibia. b) The real interest in most parts of the world has largely remained constant. Discuss the effect of real interest rate change in the Namibia that you identified in part a) on the value of the Namibian dollar in the foreign exchange market. c) Given your answer in part b), explain the changes that will occur in imports from other countries and export from Namibia. Question 3 National savings in Namibia has recently increased. a) Explain the effect of this increase on the real interest rates in Namibia. b) The real interest in most parts of the world has largely remained constant. Discuss the effect of real interest rate change in the Namibia that you identified in part a) on the value of the Namibian dollar in the foreign exchange market. c) Given your answer in part b), explain the changes that will occur in imports from other countries and export from Namibia. Question 3 National savings in Namibia has recently increased. a) Explain the effect of this increase on the real interest rates in Namibia. b) The real interest in most parts of the world has largely remained constant. Discuss the effect of real interest rate change in the Namibia that you identified in part a) on the value of the Namibian dollar in the foreign exchange market. c) Given your answer in part b), explain the changes that will occur in imports from other countries and export from Namibia.

Explanation / Answer

1 will fall since supply increases while demand remains same

2 The value of Namibian dollar will fall due to flight of capital

3 Exports will rise because they are now cheap for foreigners. Imports will fall because they are now dear for nambians

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.