Question

a. Explain why a country under monetary unions do not have assess to monetary policy.

b. Discuss two impact of fiscal balance on the economy.

c. Explain when a country’s debts are sustainable.

d. With reference to the “Galamsey” issues in the country and cocoa farming, suggest and explain one private means of resolving this issue.

Answer 1

1) because all decision related to monetary policy is decided by monetary union. For example during Greece crisis, Greece was not able change monetary policy as it was bounded by union.

2) fiscal balance mean country debt of all types is equal to zero, thus it show that country macroeconomic stability and thus it boost country sovereign credit rating which will be helpfull in attracting investment.

3) it show that country debt is enough and country will be able to pay that debt without any problem and this debt doesn't cause any problem to macroeconomic stability of country.

4) Small-scale illegal mining operations in Ghana , which are destriyung farmlands of cocoa,forests, and water bodies in Ghana,known as galamsey. By erecting concrete wall on the mouth mine will prevent illegal practice and stop access to it.