Q. Illustrate the effect of capital formation by compering the ppc curves, at the present time and ten years in the future, for two economies, one with a high and other with a low rate of capital forfmation

Q. Use the money market and foreign exchange diagrams to answer the following questions about the relationship between the British pound and the U.S. dollar. Let the exchange rate be defined as U.S. dollars per British pount. We want to consider elucidate how a change in the U.S. money supply affects interest rates. On all graphs label initial equilibrium point A.