Kaplan bus204 Unit 6

Unit 6 [BU204: Macroeconomics]

Unit 6 Assignment: Economic Growth and

Loanable Funds Market

1. Your Assignment should have a cover sheet with the following information:

• Your Name

• Course Number

• Section Number

• Date

2. You may submit your Assignment using theUnit 6 Assignment template, renaming it as required in item 4 below.

3. Unless specified differently by your instructor, your completed Assignment should be saved with the following file name format: course number, an underscore, section number, an underscore, your LAST name, underscore, your FIRST name, an underscore, the unit number, an underscore, and the word “Assignment.” It will look like this: BU204_section number_LAST_FIRST_Unit number_Assignment. (BU204_2_Smith_Tina_Unit 6_Assignment.docx)

4. Respond to the questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. Your paper should be highly organized, logical, and focused.

5. Required Format:

• Correct filename

• Correct citations within answers

• Standard English with no spelling or punctuation errors

• Correct references at the bottom of the last page

Assignment

Suppose you are employed as an assistant researcher to conduct study on the major determinants of the variations in the economic growth of countries. Based on the scenarios presented in the Assignment, compile a research paper that analyzes factors that indicate the disparities of economic growth among countries. View the Chapter 12 “Is Higher Productivity a Problem? Will it Lead to Widespread Job Losses?”video and Chapter 13 “Why are Stocks Riskier than Bonds?”video.

In this Assignment, you will be practicing the following Professional Competencies:

? Obtain and process information

? Written communication

Unit 6 [BU204: Macroeconomics]

PART 1: Comparing Long-Run Economic Growth Rates of Countries

Use the Kaplan electronic library and databases to conduct research to identify the key factors that determine long term economic growth. You can find the most up-to-date reports on the economic growth trends of different countries under the World Bank website linked below.

http://data.worldbank.org/products/wdi

Please also refer to the Webliography in the course web page for additional information on the researches done on economic issues.

After you have conducted research and read the items listed above, access the “Data & Research” tab in the World Bank website and compare growth rates between two countries of your choice. Specifically, select one advanced economy (such as U.S., Germany, etc.), and select one developing economy (such as Angola, Bangladesh, etc.).

Download their data for major economic indicators (2005–2013) such for the real GDP growth (annual %). Then identify and describe possible factors that may explain the differences between the GDP growth rates and long term economic growth of the advanced and developing economies for the countries you selected.

PART 2: Loanable Funds Market

1. Examine each of the following scenarios in the market for loanable funds. Explain the impacts on private savings, private investment spending, and the rate of interest under each of the following events. Assume the economy is autarky (closed) and it does not have trade and capital transactions (flows) with foreign countries.

a. Assume the government balances its budget and reduces the size of its deficit to zero. (Refer to the graph below). What is its impact on private savings, private investment spending, and the rate of interest?

Unit 6 [BU204: Macroeconomics]

b. Suppose the consumers decide to save more money, at the given rate of interest. Then assume the budget is balanced and the deficit is zero (refer to the graph below). What is the impact of this scenario on private savings, private investment spending and the rate of interest?

This Assignment is related to long term economic growth and the roles of saving, investment and the financial system in promoting economic growth. (Chapters 12 and 13)

Directions for Submitting Your Assignment

Before you submit your Assignment, you should save your work on your computer in a location and with a name that you will remember. Make sure your Assignment is in the appropriate format (Microsoft Word®), then, when you are ready, you may submit to the Dropbox.

Unit 6 [BU204: Macroeconomics]

Unit 6 Assignment: Economic Growth and Loanable Funds Market
Content and Analysis	Points	Points
	Possible	Earned
PART 1	15
Correctly identified growth rates for a developed and a developing country.
Provided a detailed discussion of why the growth rates differ across these
countries.
PART 2, Problem 1.	3
Correctly explained effect on private savings.
Correctly explained effect on private investment spending.	3
Correctly explained the effect on the rate of interest.	3
PART 2, Problem 2.	2
Correctly explained effect on private savings.
Correctly explained effect on private investment spending.	2
Correctly explained the effect on the rate of interest.	2
Writing Style, Grammar, and APA Format.	5
Total	35