Answer to Question #283269 in English for yenew

Question

Collect data on National Saving of Ethiopia from 1991 to 2020 for the last 30 years and depict them via graph and compare it with average saving rate for Sub-Saharan Africa. Discuss the major macro policy issues that determines national saving in developing countries and their effects on saving (10 marks)

Answer 1

The major tools of macroeconomic policy are fiscal policy (government spending and taxation) and monetary policy (central bank control of the money supply). These tools are used to achieve macroeconomic equilibrium.