economics help

[student8]

aslamoalaikum!i have a question can any body answer me plzzzz.....
Can government always achieve economic growth???

 

[student8]

It depends on the type of economy. Usually it's a mixed a economy.
Governments cannot always achieve economic growth due to various factors affecting the BOP.
Examples of such factors are:
- Multinationals sending their profits abroad (Cash is going out of the country)
- Too many goods being imported (once again, goods are coming in, cash is going out)
- The currency being devalued, causing inflation. People will notice that they can buy less than what they used to.
- Local firms are inefficient and are producing goods of low quality, hence the local consumers are not satisfied and will tend to buy from multinationals or import from other countries.

If you can give me time till tomorrow, I can be much more detailed about this.
However if you have anymore questions, ask away. I'll answer them when I read em.

- Keep this in mind, if the BOP is positive, An economic growth has taken place and there is a surplus of money in the economy and this money could be utilized to improve infrastructure or build new schools and hospitals. The good economy always has a balanced BOP. If the BOP = BOT, then the Economy is doing well. If the BOP is in a deficit (meaning the BOT is more than BOP) then the economy is doing bad and the government may not be able to repay loans (if it has any).

jazzkallah for ur favor,i am waiting for ur detailed answer.

 

[student8]

thanx alot

 

[student8]

and what about format of current account

 

[student8]

doesn't it contain capital account

 

[student8]

thanx alot but i want to ask why u dont believe in Allah

 

[student8]

in islamiat????