Who defines the rules/regulations in any economy?
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7. ________________ are all the other ways that a nation can draw up rules, regulations, inspections, and paperwork to make it more costly or difficult to import products.
a. Import barriers
b. Nontariff barriers
c. Trade regulations
Consider a small, open economy (Honduras) with perfectly mobile capital and a fixed exchange rate. The newly-elected government hopes to improve Honduran economic performance by stimulating business investment spending there. The government's adding tax incentives for businesses and easing various rules and regulations, in fact, allowing businesses to buy more equipment and build more factories and warehouses.
Describe what happens to each of the following and explain why:
a) Honduran exchange rate
b) imports to Honduras
c) exports from Honduras
d) Honduran money supply
e) Honduran capital account (KA)
f) consumption
g) investment