) An increase in the current account deficit may be due to

A) an increase in private saving.

B) a fall in domestic investment.

C) a rise in the budget surplus.

D) a decrease in private saving.

E) a fall in the government's budget deficit.

Discuss the short term and long-term benefits of a government subsiding university education. What were the short term and long term disadvantages of a government subsiding university education. Discuss the functions of the stock exchange. Discuss reasons why Alibaba.com chose to float its shares on the stock exchange in the U.S.A Give examples of wage factors and non-wage factors. Discuss factors that might affect the demand for labor in Koh Lanta Discuss reasons as to why most economies operate on a mixed economy. States the factors that affect PES{1} State the relationship between the total return on equities and the risk free rate of return, expected ination and the equity risk premium. {2] {ii} Explain the effect on the components of the relationship in {i} at the point when a country enters into a prolonged recession. [6] (iii) in the light of these poor domestic prospects, resident investors in the recessiontroubled country in {ii} above are considering switching into shares in a neighbouring country. Owing to inflationary problems in this neighbouring country} it has very high interest rates and very strong nominal dividend growth. Discuss the implications of this investment strategy. {1} Define volatility for a fixed interest bond, using a formula.| [1] (ii) Bond A has an annual coupon of 6% and is redeemable in 3 years. Bond B also has an annual coupon of 6% but is redeemable in 30 years. The volatility of Bond A is 2.6?3 and the volatility of Bond Bis 13.?65. Estimate the 9'6 change in price for each bond, if the yield curve changes such that yields at the short end rise by 16% and yields at the long end fall by 33%. iii} Outline a scenario of current and future inflation which is consistent with this change in the yield curve