a. Explain how institutional factors promote economic growth in these areas promotion of modern technologythe flow of resources to the most productive areas. 2.Explain how expansionary fiscal policy works in an economy Suppose that the banking system in Ghana has a required reserve ratio of 10 percent while the banking system in the Ivory Coast has a required reserve ratio of 20 percent.In which country would $100 of initial excess reserves be able to cause a larger total amount of money creation? For the two countries, if an amount of $2000 each are deposited at two separate ban banks in both countries and decides to give $600 as loans, what is the maximum amount of money that can be created in both countries with that deposit 3. With the aid of illustration (s) explain in detail why countries push forspecialization in international trade.

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Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter31: Open-Economy Macroeconomics: Basic Concepts

Section: Chapter Questions

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a. Explain how institutional factors promote economic growth in these areas

promotion of modern technology
the flow of resources to the most productive areas.
2.Explain how expansionary fiscal policy works in an economy

Suppose that the banking system in Ghana has a required reserve ratio of 10 percent while the banking system in the Ivory Coast has a required reserve ratio of 20 percent.
In which country would $100 of initial excess reserves be able to cause a larger total amount of money creation?
For the two countries, if an amount of $2000 each are deposited at two separate ban banks in both countries and decides to give $600 as loans, what is the maximum amount of money that can be created in both countries with that deposit

3. With the aid of illustration (s) explain in detail why countries push forspecialization in international trade.

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