7)Explainwhydevelopingcountrieshavethedemandforborrowingandwhydodeveloped countriesalso supplyloansto developing...

7)Explainwhydevelopingcountrieshavethedemandforborrowingandwhydodeveloped countriesalso supplyloansto developing countries.Giveonlytheeconomicreason.8)Whatarethesourcesofsupplyofforeignexchange?9)Givingtwoexamplesexplaintherelationbetweentheriseinpriceofaforeigncurrencyanditsdemand.10)Whenpriceofaforeigncurrencyrises,itsdemandfalls.Explainwhy.11)Whenpriceofaforeigncurrencyfalls,thedemandforthatforeigncurrencyrises.Explainwhy.12)WhataretheeffectsofdisequilibriuminBalanceofPayment?13)Explaintheeffectofappreciationofdomesticcurrencyonimports.14)Howmonitoryauthorityorcentralbankcontrolmoneysupply.15)WhatarethecausesofdisequilibriuminBalanceofPayment(BOP)?16)Describethefactorsthatcauseexchangeratestochangeovertime.17)Doyouthinkthegovernment,usingbothfiscalpolicyandmonetarypolicy,facesanytrade-offsintryingtocontrolforinflationvs.unemployment?Brieflyjustifyyourargument.18)SupposeY=30.85andT=0.85.Computedisposableincome,Consumptionandprivatesaving.19)Wheredogovernmenteconomistsgetthedataforthenationalincomeaccounts?28.Doesfixedexchangeratepolicyimplythatthedemandandsupplyofforeigncurrencyinthecountryremainsfixed?Givereasonforyouranswer.29.IfnationalbankofEthiopiadecidestocontrolexchange,a.Whatdoyouthinkthepossibleobjectivewillbe?b.Whatarethepossiblemethodologiesforexchangecontrol?20)Assumeaclosedeconomyandnogovernment.Alsoassum