Task 1 and Task 2one is essay and one is repport choose The - 1

Task 1 and Task 2one is and one is repport choose The Philippines currency - Essay ExampleThis causes the domestic currency to appreciate. In addition, under this regime, an addition in international real interest rates increases domestic output, decreases exchange rates and domestic charge level on condition that money demand is much elastic to changes in the real income than the real interest rates. An increase in domestic money supply causes a proportional increase in the price levels.In this model, the income of a consumer is assumed to be exogenous. The consumer is also assumed to be living in both the present and future periods. The consumer can also follow and lend regardless of the prevailing world interests rates. The model also assumes that there is no investment made and the current and future government expenditure (G and G respectively) is exogenous. A Current Account Surplus implies that a particular country saves more than it invests. It is reflected by an excess o f domestic savings over domestic investments and an increase in a countrys net foreign assets evidenced by positive sales abroad. The model suggests a positive relationship amid the current account surplus and the current income. As the current income increases, the current account surplus also rises due to an increase in current enjoyment and government expenditure. The current account surplus experiences an inverse relationship with anticipated future income. As the future income is expect to rise, the current account surplus is expected to reduce as a result of reduction in savings.When the current account surplus is zero, the countrys savings equals the investments. Capital controls refer to prohibitions oblige by the government or Central Bank of a country to restrict the flow of foreign capital in the domestic economy. Capital controls could be exchange controls, taxes, legislation, volume restrictions and reduction in foreign remittances which reduce foreign trade. Capital