Paper instructions:
1. What is foreign aid and what is the goal of foreign aid? Does foreign aid promote economic development? Explain briefly.
2. Why can’t all the balance of payments accounts be in surplus?
3. What factors determine the demand for British pounds in foreign exchange markets? How are exchange rates determined under a flexible exchange rate system?
4. Describe developing countries and how they differ from industrial market economies. How can international trade aid development? In what ways does the international economy impose problems on developing countries?
5. How did

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